Australia's Adbri drops to six-month low on nearly doubling project estimate

Adbri

27/04/2023 03:40

** Shares of Adbri Ltd  ABC.AX  slip as much as 6.7% to
A$1.525, their lowest value since Oct. 27, 2022
    ** The cement manufacturer posts its biggest intraday pct
decline since Feb. 28
    ** Co says total cost estimate for its Kwinana Upgrade
project is now between A$385 mln and A$420 mln ($277.7
mln-$254.6 mln), nearly double the initial estimate
    ** "(Cost) increases have been driven by a combination of
external factors including the escalating cost of construction,
constraints on available labour and supply chain challenges" -
ABC
    ** Co says project remains on track for commissioning in Q2
2024, with new plant expected to be fully operational in Q3 2024
    ** More than 1.6 mln shares change hands, vs the 30-day
average volume of ~1.4 mln
    ** ABC stock down 1.2% YTD, as of last close
    
($1 = 1.5124 Australian dollars)

 (Reporting by Harish Sridharan in Bengaluru)
 ((harish.sridharan@thomsonreuters.com))