Australian underground coal contractor, Mastermyne Group, has begun a business restructuring programme to reduce overhead costs by 26%, the company said in a recent ASX announcement, following ongoing weakness in the mining services sector.
The restructure follows a full review of Mastermyne’s operations, which identified cost savings from closing workshops that were considered non-core and reducing overhead roles to align with current activities. The company is also reducing board costs by 50% in parallel to the business restructuring.
“The restructuring initiatives will strengthen Mastermyne’s competitiveness and result in a more streamlined, more responsive organisation with a lower fixed cost base,” said Tony Caruso, Mastermyne’s CEO. “Importantly [the restructure] has no impacted on the organisation’s capability to pursue its growth strategies.”
The company also reported unaudited results for the financial year to 30 June 2016, which included revenues of AUS$168 million and earnings of AUS$1.4 million – including a one off restructuring costs of about AUS$3.1 million.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/mining/04082016/mastermyne-restructures-to-reduce-costs-2016-2158/