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Mastermyne positive despite FY2016 loss

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World Coal,

Australian mining services company, Mastermyne, reported an underlying net loss of AUS$3 million in the financial year to 30 June (FY2016) as revenues fell 3.3% to AUS$168.4 million. But the company is well positioned to take advantage of any upturn in the market.

“We are starting to see some early signs of recovery as coal prices stabilize,” said Mastermyne CEO, Tony Caruso. “We believe that the worst of the cost restructuring is now behind us and, whilst we expect the next year to remain tight, we are confident that the restructuring undertaken during the second half has set us up for the year ahead.”

In March and April of this year, Mastermyne restructured its business in response to the slowdown in the mining sector, closing workshops in Mackay and Rockhampton, Queensland. “Through the restructuring the company has positioned its operations to generate strong cash returns throughout the upcoming year,” the company said.

Looking ahead, the company believes underground operations will remain subdued, as its clients continue to focus on cost reduction.

More positively, the company said that current divestments by major mining companies were likely to “create opportunities with the new owners in contract mining services.” Mastermyne was “well positioned” to take advantage of these opportunities as they arose, the company concluded.

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