Perenti Limited has reported that its preliminary unaudited free cash flow for FY25 is expected to reach around A$280 million, significantly above the previous expectation of over A$150 million. This strong performance is attributed to several factors, including the conclusion of an underground mining contract in Botswana, which generated A$75 million through the sale of property, plant, and equipment and an additional A$17 million from onsite inventory. Improved working capital efficiency, with cash flow conversion above 95%, and a reduction in net capital expenditure to approximately A$300 million due to the timing of capital payments have also contributed to the boost in cash generation. When normalized for the A$92 million proceeds from asset sales and inventory adjustments, the free cash flow stands at roughly A$190 million, exceeding original guidance. The enhanced cash flow is expected to aid in reducing net debt, with leverage projected to improve to 0.5x as of 30 June 2025. Despite these developments, the company reiterated its FY25 revenue and EBIT(A) guidance as provided earlier in June, and it will release its full audited financial results along with forward-looking commentary in late August. Executives at Perenti Limited continue to emphasize their commitment to delivering value for stakeholders, citing the diligent operational efforts of their global workforce and prudent capital management strategies. From a sentiment perspective, the news carries a bullish tone for the company. The substantial increase in free cash flow, coupled with improved leverage and disciplined capital management, provides encouraging signals for investors, particularly as these results position Perenti Limited well for continued value creation in FY26 and beyond. Conversely, a bearish view might caution that the performance is based on preliminary unaudited results and that final figures might be subject to adjustments post-audit, while ongoing market uncertainties could present risks not fully addressed in the current report.