- Macmahon Holdings’ (MAH) recently acquired contracting business, GBF Group, has now finalised contracts with Silver Lake Resources (SLR)
- The contracts are for additional work at the Mount Monger gold operations in Western Australia
- GBF has been operating at Mount Monger since 2014 and provides various mining services
- Macmahon also reported that there has been no material impact from the coronavirus on its overall financial performance
- Therefore, it doesn’t see the need to change its guidance for the 2020 financial year
- Macmahon is up 3.75 per cent on the market this afternoon, selling shares for 20.8¢ each
Macmahon Holdings’ (MAH) recently acquired underground contracting business, GBF Group, has now finalised contracts with Silver Lake Resources (SLR).
The contracts are for an additional three years of work at the Mount Monger gold operation in Western Australia. The contracts will add approximately $200 million to GBF’s order book.
GBF has been operating at Mount Monger since 2014 and currently provides mining services to the Daisy Complex, Cock-eyed Bob and Maxwell mines, which form part of this operation.
Coronavirus (COVID-19)
Macmahon says at this stage there has been no material impact on its overall financial performance. Therefore, the company does not see the need to change its guidance for the 2020 financial year.
However, despite the limited financial impacts, Macmahon considers it wise to have a cautious approach around spending. This translates to the company choosing to delay some of its previously planned expenditure.
Macmahon has a strong balance sheet with cash and unused working capital facilities totalling $155 million (as of December 31 2019).
It is therefore well-positioned to work through this challenging period.
Given its strong financial position, Macmahon has now officially paid the interim dividend announced in February 2020.
Macmahon is up 3.75 per cent on the market this afternoon, selling shares for 20.8¢ each at 2:21 pm AEDT.