Ausdrill’s shares have dropped by a quarter this week due to ongoing contract negotiations regarding Mineral Resources’ Wodgina project, as well as delays arising from the rock fall at the Kalgoorlie Super Pit in the Goldfields, both in Western Australia.
The company announced that its contract with MinRes subsidiary Process Minerals at Wodgina was now expected to be worth around half the previously cited figure of $180 million over a three-year period.
The Kalgoorlie Consolidated Gold Mines (KCGM)-owned Super Pit, while still operational on its southern side, is now undergoing long-term review following two significant rock slides that occurred over a 12-hour period in May, a managerial decision that has contributed to reducing Ausdrill’s scope of works by 35 per cent.
“At this stage, it is difficult to provide a definitive timeframe for the reduction and we continue to work closely with KCGM as they develop their future plans,” an Ausdrill statement said.
Ausdrill also announced that following a security incident late last month at Hummingbird Resources’ Yanfolila mine in Mali, operations had returned to full capacity, with development having commenced at the Komana West deposit.
Long-serving Ausdrill managing director Ron Sayers is due to retire in 2019, having sold his 10 per cent share of the company earlier this year.