The company also announced its longtime managing director Tony Caruso would leave the company to be replaced by chief executive Paul Green.

The normalised EBITDA for the company was revised down to between $34 million and $40 million, down from guidance given by the company in August of between $50 million and $55 million.

Its contract book has been reduced to a “very strong” $1.3 billion from $1.9 billion.

The company said that since the roof collapse incident at the Gregory Crinum mine last year, the contract with Sojitz “had been significantly delayed”.

Metarock was able to cancel the contract because it had been unable to access the mine for a continuous period of more than 180 days.

“The termination of the Gregory Crinum contract will materially reduce the risk profile of the company’s coal operations,” Metarock told investors.

Metarock recently shifted its strategy from coal to the broader mining sector including hard rock mining.

“While the foundation businesses continue to perform strongly, delays at Crinum mine and poor results from Pybar Mining Services business have led to an underperformance of the company,” the company said.

“As a result, the board has repositioned Metarock’s strategy aimed at restoring profitability and reducing gearing to target levels.”

It said the tightness of the labour market was also impacting the ramp-up of new projects and the revised guidance was a reflection of this.

The company would sell off surplus equipment while the coal market was strong which it said would reduce gearing levels.

Caruso’s departure coincided with the shift in strategy towards consolidation.