Delays at the Kestrel mine extension mean that Mastermyne will not see most of the profits and revenue on the contract until FY2013.

“The project commenced mobilising in October and there has been an upfront investment on mobilisation which will be recouped over the delivery of the project,” Mastermyne said.

“Access to the work areas on the project has been delayed for reasons beyond the control of Mastermyne and as a result the early stages of the project have been disrupted.

“Upfront mobilisation, access interruptions out of the company’s control and overhead on the demobilised workshop have resulted in the loss year to date.

“This access delay will also mean that the majority of the revenue from this project will be delivered in FY2013.”

Revenues for the services division for the six months to December 2011 fell to $1.8 million from $3.9 million for the previous corresponding period.

“A general manager with experience in contract maintenance–services has been appointed,” the company said, without naming the person.

Earlier this year, Mastermyne strengthened its operational management team with the appointment of John Stuart-Robertson as chief operating officer.

“Tendering in the services division is continuing and the division will benefit from the increased construction activity in the Bowen Basin,” Mastermyne said.