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Incitec Pivot Provides Further Update on Western Australia Business

11 Jan 2018  |  18:51:00  |  Associate analysts  |  Increase  |  Decrease  |  

Original announcement: Further update on Western Australia Business

Incitec Pivot advised that it has been notified that with effect from expiry of its current contract with Roy Hill Iron Ore (Roy Hill) on 9 February 2018, IPL will cease to be Roy Hill's contracted supplier of explosives products and services. Having regard to the Company's contractual commitments with its third party supplier of ammonium nitrate prill in WA, in addition to the amounts announced on 6 December 2017, the loss of the Roy Hill contract is currently estimated to have a one off impact on Net Profit After Tax (NPAT) of $5m in FY18, $16m in FY19, $22m in FY20, $18m in FY21, and $20m in FY22, and minimal impact beyond FY22. These NPAT impacts may be able to be mitigated to some extent by new commercial arrangements.

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