Macmahon Holdings Flags $25M To $35M Provision Over Newcrest Telfer Contract

Macmahon Holdings shares have risen sharply despite flagging a potential $25 million to $35 million provision against its work on the Telfer gold mine and a contractual dispute with client Newcrest Mining.

The mining services provider said it was in formal talks with Newcrest about the life-of-mine contract at the Pilbara site in the wakes of changes to the mine plan and works program.

It said Macmahon would suffer losses without an increase in the rates Newcrest paid or other changes to the contract.

Excluding the potential provision, the contractor maintained its underlying earnings guidance for fiscal 2019 to $70 million to $80 million.