5th November 2024 | By Marleny Arnoldi
Engineering group Murray & Roberts (M&R) has warned that its interim earnings for the six months ending December 31, 2024, will be significantly impacted by the loss of its long-term contract with De Beers’ Venetia mine in South Africa, which represented over 50% of its mining business in the region. De Beers recently informed M&R that a large portion of the work under the contract will be descoped, with negotiations ongoing.
Additionally, M&R’s mining operations in the Americas have faced delays, and its new ventures in Mexico, the US, and Indonesia are not expected to impact the 2025 financials significantly. As a result, the group forecasts at least 20% lower earnings for 2025.
However, M&R remains optimistic about long-term prospects, particularly in Zambia’s copper sector. The group also successfully reduced its debt from R2 billion to R409 million through a deleveraging plan and asset disposals, although liquidity remains a concern.
Despite these setbacks, M&R’s restructuring efforts and focus on new projects provide hope for recovery in the coming years.