Allmine’s life as a publicly listed company has been short-lived. The mining services company only listed on the Australian Securities Exchange two years ago.
After market close yesterday, Kim Strickland and David Hurt from chartered accounting and business advisory firm WA Insolvency Solutions said they had been appointed as joint and several voluntary administrators.
Hot on the heels of the news, Allmine managing director Paul Kreppold announced his resignation, effectively immediately.
Allmine has made no secrets of its financial woes, with the company recently implementing a strategic review of its operations and finance position.
The company anticipated the review to be completed by later this month, with trading in the company’s securities suspended while the review was being undertaken.
It seems the review failed to find a solution to the company’s troubles on top of struggles partly underpinned by the challenging economic conditions in the mining sector.
The company’s struggling financial position was made clear in April with the release of cash flow statements showing Allgroup’s cash position was negative $A7.52 million.
The company had previously informed the market that it was conducting discussions with its primary lender regarding potential breaches of its banking facility, but claimed it was in compliance with its repayment obligations.
Allmine oversees three divisions, including construction services via its subsidiary Construction Industries Australia, fixed and mobile plant maintenance via Allmine Maintenance, and engineering, procurement and construction via subsidiary Arccon.
Allmine offers a life-of-mine service to owners, operators and subcontractors, predominantly focusing on mineral resource companies.
The company’s maintenance division operates service centres across Perth, Leinster, Karratha and Darwin.
The company has been involved in Medusa Mining’s Co-O gold project in the Philippines, Tiger Resources' Kipoi mine in the Democratic Republic of Congo and CITIC Pacific’s troubled Sino Iron project in Western Australia.
Allmine last traded at 3.6c in May.