Macmahon Holdings Limited
(ASX:MAH) has been unexpectedly dumped by Cobar Management from its expansion project at the underground CSA copper mine in central western New South Wales and says its seeking clarification on the decision.
Machmon is assessing the extent of the impact on earnings with the CSA project previously expected to contribute about $6 million to the bottom line in June 2013, and $80 million next financial year.
Macmahon says it’s seeking clarification on the reasons for the termination and will advise of the impact on market guidance once details are known.
In February, Macmahon said it expected to post a full-year loss of between $10 million and $20 million as the sale of its construction business to Leighton Holdings took effect.
Macmahon posted a net loss of $37.6 million in the first half of the current financial year.
