MacMahon Holdings terminates Nigeria contract

Company News

by David Chau

MacMahon Holdings Ltd (ASX:MAH) has terminated its contract for quarrying at Calabar in Nigeria.

The company says operations at Calabar will stop on 28 October, and demobilization will commence immediately afterwards.

MacMahon says it is walking away from the Calabar contract because of its underperformance – namely, low mining volumes, and high rental and maintenance costs.

The company also confirmed that it has been incurring losses with its Telfer project since February. This was due to start-up costs being higher than expected, and this will have a negative impact on its FY17 results.

MacMahon reported a net profit of $1.7 million at 30 June 2016.

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.