The company’s shares have plummeted after tragic news at its mine in Central Queensland.
The post Mastermyne (ASX:MYE) share price sinks 18% after mining fatality appeared first on The Motley Fool Australia. –
Resources Health and Safety Queensland are investigating the incident, with all mining operations suspended until further notice.
At the time of writing, the Mastermyne share price has plummeted 18.55% to 90 cents.
In a statement to the ASX, Mastermyne reported that a worker was fatally injured last night in an underground mine collapse in central Queensland.
A section of wall and ceiling caved in while operations were underway at Gregory Coal Mine, located at Crinum, the company said.
Mastermyne advised that one of its workers was fatally injured, while another employee was trapped in the rubble. He has since been freed and is in hospital with non-life-threatening injuries.
Mastermyne managing director Tony Caruso said the company was providing support and assistance to the affected families. Counselling services have also been made available to all staff impacted by the incident:
This is a tragic event and our immediate thoughts are with the family, friends and workmates of our employee.
The safety and wellbeing of our staff is one of our core values. The cause of the incident will be thoroughly investigated and we will continue to support the family and our work colleagues.
Quick refresher on the Mastermyne contract
In late May, Mastermyne secured a $660 million mining services contract to operate the Gregory coal underground mine owned by Sojitz.
The 7-year deal includes an initial 6-month period of work to re-establish the underground infrastructure, with 180 full-time personnel employed. Works include conveyor systems, ventilation and associated mine services, plus remediation works and surface infrastructure.
The company previously planned to start mining production late this calendar year.
The mine has coal reserves amounting to 159 million tonnes of coking coal. This makes it one of the largest coal reserves in Australia and the world.
About the Mastermyne share price
As of market close yesterday, Mastermyne shares were trading 25% higher over the past 12 months. However, after today’s significant fall, its shares are now flat.
The company’s share price is up by more than 30% year-to-date.
Based on today’s price, Mastermyne has a market capitalisation of roughly $97.3 million, and approximately 107.5 million shares on issue.
Should you invest $1,000 in Mastermyne right now?
Before you consider Mastermyne, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Mastermyne wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
Why this broker sees the Westpac (ASX:WBC) share price hitting $30
Woolworths (ASX:WOW) share price struggles amid bricks frustration
Canva is now worth more than Woolworths! When can we buy shares?
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.