Transport contractor McAleese has detailed the cost of the dwindling iron ore price – and its dealings with Atlas Iron – on its bottom line.

McAleese has announced underlying full-year earnings should fall to about $70 million from $85.3m in 2013-14.

The figure is $20 million lower than the group’s previous forecast, which only came out in February.

The company suffered a 49.4 per cent drop in its share price on the back of the news.

McAleese has a contract to haul ore from Atlas Iron’s mines to port, but Atlas has decided to close its Pilbara mines in the wake of falling iron ore prices.

This decision pushed McAleese into a trading halt last week, which it said it would use to seek new opportunities with Atlas.

The transporter struck a deal with Atlas to continue to haul ore from the Abydos and Wodgina mines during May, meaning Atlas will keep the mines open but pay a lower base haulage rate to McAleese, combined with a profit share dependant on the price of iron ore.

McAleese says it is also in discussions on the possible recommencement of mining at the Mt Webber mine, and has launched a review of its heavy haulage and lifting division.

But the company says a non-cash impairment remains likely.

It has also brought in financial advisers 333 Group to conduct an independent review of its financial performance.