AusRAIL, Market Sectors

Macmahon to inject more cash into Alice-Darwin rail link

<p>Mining and contract services company Macmahon will contribute an additional $8m equity to the rapidly developing Alice-Darwin rail link.</p> <p>A revised business plan for the railway means bringing forward equity commitments, Macmahon said in its six-monthly results to December 2002.</p> <p>Macmahon, which has 6.2% share in the AustralAsia Railway Corporation member Asia Pacific Transport, already has $15.4m in equity commitments to the project, and said a "satisfactory and timely completion" of the project refinancing is critical to its future.</p> <p>Due to the required equity contribution and mobile plant capital expenditure, its debt in the second half of the year will increase to $75m, the company said.</p> <p>Macmahon’s total revenue for the six months to December 31, 2002 came in at $271m, leaving an after-tax profit of $2.8m, a 5% increase on the previous year.</p> <br />