Mining contractor Metarock Group has dropped a key coalfields contract and announced the departure of managing director Tony Caruso.

Metarock said it had terminated its contract to provide services at Sojitz Blue’s Gregory Crinum underground mine, which is subject to an extended force majeure after the September 2021 roof collapse that killed an employee.

Meanwhile it has announced a $190 million win in the form of a two-year extension to its contract covering services at Anglo American’s Moranbah North and Grosvenor mines.

In a market update today, Metarock said that while its foundation businesses continued to perform strongly, delays at the Crinum mine and poor results from the recently acquired Pybar Mining Services had led to under-performance of the company.

“As a result, the Board has repositioned Metarock’s strategy aimed at restoring profitability and reducing gearing to target levels,” the company stated.

Expected earnings down

It has revised its guidance downwards for this financial year, with revenue now expected to hit $530-580 million and EBITDA $34-40 million (compared to guidance released in August of $600-$650 million revenue and $50-$55 million EBITDA).

After the Crinum contract termination, Metarock’s order book stands at $1.3 billion, down from $1.9 billion.

Metarock said also it had submitted a claim with Sojitz Blue for drift recovery costs which had been fully expensed by the company.

In addition to the problems with Pybar profitability and the Crinum contract, Metarock said continued tightness in the labour market was affecting the ramp up of new projects and revised guidance reflected a conservative view of this situation.

Key leadership change

As part of a ‘period of consolidation’, the Board of Metarock has appointed Paul Green as the new
managing director, effective immediately.

Mr Green has been with the group for more than two years, most recently in the role of Mastermyne chief executive officer.

Tony Caruso – who has been has been chief executive officer of Mastermyne and subsequently Metarock for more than 15 years – will be leaving the company after a handover period.

“I am proud to be part of an organisation that has grown to be one of Australia’s leading mining services providers,” Mr Caruso said.

“I am prouder still of the wonderful people we have at all levels within our company and I wish them all the success in the years to come.”