Macmahon
(ASX:MAH) and gold major, Newcrest Mining
(ASX:NCM) have entered into good faith negotiations regarding Macmahon’s life of mine mining contract at the Telfer project.
If the Telfer discussions remain ongoing at Macmahon’s next reporting date, it expects to see a provision of between $25 to $35 million.
Telfer is a mine site in the Pilbara region of Western Australia, within the Great Sandy Desert. And Macmahon first started the Telfer Contract in February 2016.
Macmahon says pending the negotiation outcome, it is reiterating its EBIT guidance for FY19 of $70 to 80 million (excluding the one off provision mentioned earlier).
The facilitated negotiations will end by no later than 5 August 2019.
Macmahon is confident of the outcome but says it’s prepared to commence a contractual dispute resolution process if the good faith negotiations are unsuccessful.
Macmahon
(ASX:MAH) shares are trading 2.94 per cent higher at $0.18
