The Perenti Global Ltd (ASX: PRN) share price could fall further this morning after an update on the company’s Burkina Faso operations.
Formerly known as Ausdrill Ltd (ASX: ASL), Perenti is an ASX 200 mining services company operating across the world.
Why did the Perenti share price slump yesterday?
The Perenti share price plummeted 10.73% lower to $2.08 per share yesterday after reporting a “security incident” at its Burkina Faso site.
The company works with Canada-based gold miner Semafo at its Boungou mine in Burkina Faso.
Yesterday, Perenti confirmed reports that a convoy escorted by military police had been ambushed 40 kilometres from the site.
The Perenti share price slumped 10% after confirming members of its African Mining Services (AMS) workforce were killed.
What did Perenti say this morning?
Perenti said 19 members of its AMS workforce had been fatally injured with 20 hospitalised. The Aussie miner said it is working to officially confirm these numbers.
Perenti is “absolutely devastated by this incident” as it supports the victims’ families, according to CEO Mark Norwell.
Planning is underway for the safe return of the AMS workforce at Boungou to their homes while mining services have been suspended.
The attack comes amid a growing security crisis in the African nation in 2019.
The Boungou mine’s contribution to Perenti’s FY19 net profit after tax (NPAT) was not material. Perenti is also assessing the potential impact on its FY20 earnings guidance.
How has the Perenti share price performed in 2019?
Prior to yesterday’s 10% drop, the Perenti/Ausdrill share price had enjoyed a solid 2019 on the ASX.
Perenti shares are still up 85.22% to $2.08 per share prior to this morning’s movements on the share market.
At the time of writing, Perenti had a market cap of $1.43 billion with a dividend yield of 3% per annum.
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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.