Shares of Macmahon Holdings Limited (ASX: MAH) have shed 4.2% of their price this morning after the mining services business announced another impairment, which it blamed on the "challenging market conditions" facing the sector.
Macmahon, which recorded a $130 million impairment and a total loss of $112 million at its half-year results in February, said it now expects to book another impairment which will hit its bottom line result by between $95 million and $125 million.
The impairment will be recognised in the carrying value of equipment and inventory assets, meaning that it will not have an impact on the company's cash flow or existing operations.
Macmahon's shares have now fallen 68% since August 2014 while they're down 94% since early 2012 with a market capitalisation of just under $60 million. Unfortunately for investors left holding the shares, the stock could have even further to fall as mining companies, including BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO), increasingly take their service roles in-house. As such, investors would be wise to focus their attention on other, safer alternatives.
