MACA (ASX:MLD) plans to stop operations in Brazil

Company News

by Rachael Jones

MACA (ASX:MLD) says it will stop operations in Brazil from this month.

This follows early termination of the contract at Antas for AVB Mineracao Ltda, a subsidiary of Oz Minerals.

The contract was due to conclude in 2020 and the reduction in the Work in Hand (WIH) position as a result of the early termination will be circa $8 million.

It is expected there will be a non cash impairment related to the cessation of operations in Brazil of approximately $2 million.

In addition, there are unrealised forex losses that will be triggered upon closure of the subsidiary, of approximately $5 million based on current exchange rates.

Shares in MACA (ASX:MLD) are trading 0.5 per cent higher at 98 cents.
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.