I assume it means the contract will be offered to another mining services company and assumedly after negotiations, if the preferred bidder and the mining company accepts the terms and conditions then a binding contract will be signed. Thus far, only a letter of intent has been issued, a binding contract has not yet been signed. So, unless negotiations fail, MLD will vacate site by the end of contract date. Stand to be corrected.
Whilst this may be a disappointing and perhaps unexpected development for MLD, income is still being derived from the existing contract and there are 8 or so months to organize further tendering for other sites. MLD's SP has certainly took a hammering in the last few months - not necessarily company specific as it is not alone in a massive pullback - sector needs a bit of love. FY end not far off for tax issue purposes.
MLD Price at posting:
77.5¢ Sentiment: None Disclosure: Held
