Shares dip as Perth miner flags $95m hit

Shares dip as Perth miner flags $95m hit

AUSDRILL shares have taken a hit after the Perth-based mining company flagged it would cop a non-cash impairment of up to $95 million in its full-year results.

The drill and blast services provider did not detail the nature of the impairment, but told the ASX on Thursday afternoon the amount would come in between $75 million and $95 million, or between 2.8 per cent and 3.6 per cent of its total assets.

Shares in Ausdrill were trading 6.79 per cent lower at $1.305 by 1519 AEST, more than 50 per cent down on a near six-year high of $2.73 in March 2018.

Ausdrill said it would continue to review its balance and capital sheet and said it planned to complete the work by the time it releases its FY19 results in late August.

The impairment is not expected to affect cash flow, operations or impact on banking covenants.

The company maintained its underlying full-year profit guidance of $98 million.

The company announced in February a five-fold increase in its interim net profit to $217 million following the acquisition of Barminco in November.

In April Ausdrill revealed it had sacked and reported a worker to police over an alleged $10 million fraud committed over an eight-year period.