At the AGM at the end of last year, it was stated that the forecast revenue for the 2015 Financial Year has been revised to a range of $750m – $850m which is down from $750m – $1 billion. Net profit will be significantly less than last year.
FMG exposure is also a risk with Christmas Creek moving to a 2 contractor model.
There will need to be an asset write-down at some point with a third of the fleet currently idle.
I still hold but it is a tough time for mining services companies.
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