Roy Hill move blasts Incitec profits

INCITEC Pivot shares have sunk after the company warned that its profits will take an $81 million hit from the end of a contract to supply explosives and services to Roy Hill Iron Ore mine.

The company announced, after Thursday’s market close, that it will cease to be the Western Australian mine’s contracted supplier when its current contract expires on February 9.

Incitec expects the contract loss will result in one-off hits of about $5 million in FY2018, $16 million in FY2019, $22 million in FY2020, $18 million in FY2021 and $20 million in FY2022.