Shares of Ausdrill Limited [ASX:ASL] have fallen by 20.17% since opening this morning.
At time of writing, shares are trading at $1.90, down from $2.38 on Friday, 8 June.
Ausdrill is a drill and blast and exploration company with operations based in Western Australia and Africa.
The company’s share price has been on a downward trend since late May. Around this time, Ausdrill received some bad publicity following the death of three people at their site in Africa, Yanfolila in a clash between security forces and opponents of the mining project.
Why has Ausdrill’s share price dropped?
The further fall in share price came shortly after the company revealed a contract setback and reduced work in their Gold Mines.
Ausdrill announced that they are now expecting their Mineral Resources’ Wodgina lithium project to be about half the previously anticipated $180 million over the first three years.
They have confirmed that negotiations with Process Minerals International, in relation to the contract scope of Wodgina and potential opportunities beyond the current project, are continuing.
The update also revealed 35% reduction in mining rates at their Kalgoorlie Consolidated Gold Mines (KCGM) project, known as the Super Pit.
This reduction is due to two significant rock falls mid-last month, which cut off access to parts of the mine and subsequently limiting their ability to mine, as reported by The West Australian.
What’s next for Ausdrill?
Ausdrill have announced that following on from the recent incident at Yanfolila, the Hummingbird Resources project is now operating at full capacity, with development works commencing at the Komana West deposit.
As for the Super Pit, there is currently no timeframe for the reduction, they have stated that they are working closely with the team on KCGM as they develop their future plans.
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