Transport group McAleese had half its market value wiped out after it warned of a steep earnings slide because of Atlas Iron's decision to mothball its Pilbara mines.
McAleese, which provides road haulage services to Atlas, warned its underlying full year earnings were expected to fall to about $70 million from $85.3 million in 2013/14.
The latest forecast was about $20 million lower than the group's February forecast of $85 million and $90 million in underlying earnings this financial year.
Shares in McAleese plunged to fresh lows as they resumed trading on Monday after their suspension on April 13.
The stock closed 7.9 cents, or 49.4 per cent, lower at 8.1 cents, wiping more than $22 million off the company's market cap.
The profit warning came as McAleese said it was preparing to recommence providing some haulage services to Atlas, which last Friday said it was re-opening Abydos and Wodgina mines.
It remains in talks with Atlas about the Mt Webber mine.
Atlas in April suspended all operations at its mines because of plunging iron ore prices.
But the miner last Friday said two of its mines would re-open.
McAleese said it was working with Atlas on commercial terms for its haulage services, which would be carried out at a lower rate.
It is also continuing a review of its heavy haulage and lifting division, which is likely to result in a hit to its bottom line.
"The expected non-cash impairment reflects low activity levels and a reduced pipeline of capital projects in the resources and infrastructure sectors across Australia," McAleese said.
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