Handlebar Hill shutdown bites Industrea

The company warned the cancellation of the contract would impact its profits for the financial year, and said it now expected to earn $290-310 million in revenue and $42-47 million in net profit after tax.Xstrata shut down the mine earlier this week on the back of weak zinc prices.High rainfall in the Mount Isa region would also bite into the company’s bottom line.Previously, the mining contractor had forecast revenue for the year of $330-350 million, and NPAT of $55-60 million.Despite the increasingly difficult conditions for mining suppliers, Industrea said it had entered into negotiations for several new mining services contracts outside of Mt Isa, and it hoped its existing equipment and some of the excess Handlebar Hill equipment could be redeployed. The company added its other business units continued to perform in line with internal forecasts, and it will continue to work for Xstrata at Mt Isa at the Blackstar and Ernest Henry mines.

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