Perenti loses a contract, shares tumble

Perenti (PRN) $1.60

Mining services firm Ausdrill has had a tough time trading since changing its name to Perenti with the slide picking up pace today. Shares were off after the company announced an equipment hire contract with Ghana Manganese Company (GMC) had been terminated. The decision by GMC was a result of pressure from the Ghana Government to limit production at the mine.

While Perenti remained confident it could recoup some of the lost payments out of the contract and redeploy the capital and equipment to other mines in the area, the company downgraded NPAT guidance around 15% to $115m-$120m for FY20.

Not one to catch the falling PRN knife at this stage.

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