Australia's Metarock falls to lowest in 6 years as Thalanga mine shrinks ops

Red River Resources

31/10/2022 04:37

** Shares of Metarock Group Ltd  MYE.AX  fall as much as
14.9% to A$0.200, their lowest since Oct. 7, 2016
    ** The diversified miner updates on the Thalanga mining
contract, where its unit had entered a deal with Red River's
 RVR.AX  unit to provide contracting services  urn:newsml:reuters.com:*:nASXfgD39
    ** Co says administrators appointed by Red River have placed
the mine on care and maintenance, prompting Metarock to take
steps to scale down workforce and remove equipment from site
    ** Adds, Metarock also seeks advice on termination of the
contract
    ** Says revised FY23 guidance announced previously had
materially downgraded the performance of contract for the
remainder of FY23 due to operation issues at the
mine urn:newsml:reuters.com:*:nL4N31K05K
    ** Co says, under the Thalanga contract, Metarock has to
recover about A$5.7 million  ($3.66 million) in debtors and work
in progress 
    ** Stock posts its biggest intraday pct fall since Oct 20
    ** Stock has fallen 72.02% this year, as of last close
    ($1 = 1.5569 Australian dollars)
 (Reporting By Udbhav Krishna P in Bengaluru)
 ((UdbhavKrishna.P@Thomsonreuters.com))