Trading Room home page

Macmahon poised for capital raising

Market watch top headlines

Australian reports

World reports

Stocks to watch

CSL, MEL, PRY, QAN, RIO, SUN, STO, WPL, OSH, ORG,

AAP

2012-12-10

Mining contractor Macmahon Holdings is poised for a capital raising as it battles to reverse a drop in earnings and tries to cut costs.

Macmahon's shares were placed in a trading halt on Monday, with the company saying an announcement was pending about a possible equity raising and strategy update.

The stock is expected to remain in a trading halt until Wednesday, or when the company makes its announcement.

Macmahon has been undertaking a major review of its costs and is axing up to 50 jobs.

In September, Macmahon said cost overruns at its Hope Downs 4 rail project in Western Australia as well as the expectation of fewer contract wins, meant its profit for 2012/13 would be about half that of the previous year.

Macmahon's shares closed at 26.5 cents last Friday.