Macmahon Holdings has confirmed the resolution of a dispute with client Newcrest Mining over its Telfer gold mine contract in the East Pilbara.

In June, the contractor flagged a $25 million to $35 million provision in its 2019 accounts because of the disagreement but yesterday said it expected the Telfer job to be cashflow positive over its remaining life-of-mine term. 

The dispute was prompted by changes to the mine plan and works program, which Macmahon warned would see it incur losses unless Newcrest lifted its rates or changed aspects of the contract.

Macmahon Managing Director Michael Finnegan said the resolution of the dispute meant the company could focus all its attention on maximising the performance of its existing business and capitalising on growth opportunities.

“We have several opportunities in our tender pipeline that we are pursuing from an exclusive or shortlisted position and I am optimistic about the prospects of winning additional work in Australia and achieving further growth in our profitable operations offshore,” Mr Finnegan said.

The contractor reiterated 2020 full-year guidance of revenue between $1.2 billion and $1.3 billion and earnings before interest and tax between $80 million and $90 million.

In August, Macmahon unveiled a 2019 full-year profit of $46.1 million, up 39 per cent on the previous year, and issued its first dividend in seven years of 0.5c a share partially franked.

Image: Macmahon Holdings Managing Director Michael Finnegan, The West Australian.