Lycopodium's Smarter Contract Scope Wins Over $300m in Gold Deals

A strategic shift toward broader-scope contracts that include equipment supply has secured major West African gold engineering deals at a still-cheap valuation.

31 Aug 2026 · 3 min read

Lycopodium, a Perth-based engineering consultant serving the resources sector, delivered a strong rally driven by a strategic shift toward broader-scope EPCM contracts that include equipment supply, winning more than A$300 million in West African gold contract awards including the A$118 million Tulu Kapi mandate and the A$196 million Doropo gold project deal.

A cheap, capital-light engineering consultant amid a resources upswing

Bell Asset Management described Lycopodium as a Perth-based engineering consultant focused on resources, energy and renewables, capital-light, well-managed, cash-backed and with a strong dividend track record, with its outlook supported by an early-stage upswing in global resources capex, alongside international expansion and acquisitions broadening its market access and services, trading on around 11 times earnings with a 5 percent dividend yield, appearing cheap versus peers.

Lycopodium is a Perth-based engineering consultant focused on resources, energy and renewables. It is capital-light, well-managed, cash-backed and has a strong dividend track record. Trading on around 11 times earnings with a 5 per cent dividend yield, it appears cheap versus peers.

— Bell Asset Management, Article, May 2026

A strategic shift toward broader-scope, equipment-supply contracts

SG Hiscock and Company said it met with Lycopodium management on a contractor site visit, describing the key strategic shift as management's intent to pursue more contracts structured like the recently awarded Tulu Kapi mandate, where Lycopodium's scope extends beyond pure engineering to encompass supply, with the roughly A$118 million Engineering, Supply and Labour Hire contract for KEFI Gold and Copper's Tulu Kapi gold project in Ethiopia covering the full suite of engineering, procurement and project management.

The key strategic shift is management's intent to pursue more contracts structured like the recently awarded Tulu Kapi mandate, where Lycopodium's scope extends beyond pure engineering to encompass supply. The ~A$118m Engineering, Supply and Labour Hire contract for KEFI Gold and Copper's Tulu Kapi gold project in Ethiopia covers the full suite of engineering, procurement and project management.

— SG Hiscock and Company, Monthly Report, May 2026

A materially larger contract confirms the strategy

Spheria Asset Management said Lycopodium shares rose 22 percent over the month, driven by two contract wins, the larger being the award of an EPCM contract for Resolute Mining's Doropo Gold Project in Côte d'Ivoire, valued at approximately A$196 million over the life of the contract, targeting average production of around 167,000 ounces a year over an initial 13-year mine life. SG Hiscock and Company confirmed the stock rose 21.5 percent on the same contract, materially larger than the A$118 million Tulu Kapi mandate discussed the prior month, again including equipment supply, reinforcing the strategic shift toward increasing revenue per engineer and reducing reliance on scarce technical headcount, with more than A$300 million of West African gold awards now secured.

The contract is materially larger than the A$118m Tulu Kapi mandate discussed last month and again includes equipment supply, reinforcing the strategic shift toward increasing revenue per engineer and reducing reliance on scarce technical headcount. With more than A$300m of West African gold awards secured.

— SG Hiscock and Company, Monthly Report, June 2026

What fund managers say they are watching next is continued execution of the broader-scope, equipment-supply contract strategy, further West African gold contract awards building on the more than A$300 million secured, delivery on the Tulu Kapi and Doropo projects, and whether the early-stage upswing in global resources capex continues supporting Lycopodium's order book.