By Rhiannon Hoyle
SYDNEY--Mining-services company Macmahon Holdings likely won't need to recognize an onerous provision against its contract on Newcrest Mining Ltd.'s (NCM.AU) Telfer gold project, it said Friday.
Macmahon had said on Aug. 6 that it would likely need to log a provision of between 25 million and 35 million Australian dollars (US$16.8 million and US$23.6 million) because of changes to the mine plan and contract program implemented by Newcrest.
On Friday, it said renewed talks with the gold miner "has led Macmahon to form the view that an acceptable agreement for increased revenue is likely to be reached in the near future."
Macmahon now expects incremental cash flow from the Telfer contract to be positive over the remainder of the contract, it said.
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