Ausdrill's profit warning and downgrade

Tumbling gold and iron ore prices have forced Ausdrill into another profit downgrade, the second this year. Management now expects revenue for 2015 to be $840m and earnings before interest, tax, depreciation and amortization (EBITDA) to fall between $150-160m. Last year, the company generated revenue of $826m and EBITDA of $174m. Little explanation was needed. Gold and iron ore miners account for 90% of Ausdrill’s revenue and both commodity prices have been crunched over recent weeks forcing miners to, at best, halt drilling. At worst, smaller miners are going under. Western Desert Resources, a nascent iron ore miner, went bust...

Tumbling gold and iron ore prices have forced Ausdrill into another profit downgrade, the second this year. Management now expects revenue for 2015 to be $840m and earnings before interest, tax, depreciation and amortization (EBITDA) to fall between $150-160m. Last year, the company generated revenue of $826m and EBITDA of $174m.

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