The remaining non-executive directors of Mastermyne have agreed to reduce their individual salaries by 20% from the headline rates until market conditions improve.

The reduction in salaries and the resignations of Darren Hamblin and James Wentworth plus other efficiencies will reduce board related costs by about 50%, chairman Colin Bloomfield said.

“Darren's actions demonstrate the character of a person who has built a tremendous business from nothing,” he said. “His long term vision and leadership are a key reason the company has grown to be a leader in its field.”

Hamblin said: “My decision to resign is motivated by a desire to effect immediate cost reduction for the company. I have always put the Mastermyne business interests ahead of my own and I see this decision as in the best interests of the company.

“I plan to remain a substantial shareholder and will retain a close interest in the performance of Mastermyne.”

Continuing weakness in Mastermyne’s customer’s operations has put relentless pressure on revenue and margins across the mining services sector.

“Mastermyne has not been immune to these pressures and has worked tirelessly to reduce their impact,” it said.

“Unaudited results from the most recent quarter were weaker than the first half result. Revenue for the quarter was $38 million resulting in a break even EBITDA.

“It's unlikely that substantial improvement will be seen during the 4th quarter of the financial year.”

Despite these challenges the company has maintained its strong balance sheet and reduced its net debt position during the quarter. Its unaudited net debt position is now $10.2 million a reduction of $3.8 million during the quarter.