Ausdrill’s Bad News Continues

By Glenn Dyer | More Articles by Glenn Dyer

More bad news from Ausdrill (ASL) about its revenue saw the share price under pressure again yesterday.

The company told the market very late on Tuesday night that a customer’s postponement of operations in Africa would cost it $28 million in lost revenue.

Ausdrill says Resolute Mining’s (RSG) decision to defer some work at its Syama Gold Mine in Mali would reduce expected revenue by $US3.5 million ($A3.79 million) a month for the next eight months.

It’s the latest in a growing string of bad news announcements from Ausdrill which has already warned of a 13% slide in earnings thanks to companies in the iron ore and gold sectors cutting spending.

ASL YTD – No relief in mining services

Ausdrill announced in August that it was taking a pre-tax hit of up to $80 million to its 2013-14 profit, mostly down to a write-down in goodwill.

The company later announced a net loss of $43 million for 2013-14. That was after a 70% fall in underlying profit to $34.4 million.

Ausdrill shares have fallen more than 50% so far this year and had closed at 50.5c on Tuesday before the latest announcement.

The shares fell 11% yesterday to 45c. Resolute surged 20% to 27.5c.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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