MDM hit by project delays

Feb 09, 2010

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Shares in mining engineering group MDM hit the skids Tuesday after the company issued a profits warning.

The group's plans to get cracking on the second phase of the construction of the First Uranium gold and uranium project in Stilfontein, South Africa, have been dealt a blow by the withdrawal of environmental authorisation for the tailings storage facility for First Uranium's Mine Waste Solutions tailings recovery project.

As a result of the suspension of the project schedule MDM's profit before tax in the year to 31 March may be around 4-8% lower than the management's previous expectations.

Market consensus for pre-tax profit for the current financial year was £6.22m prior to Tuesday's announcement.

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