Diversified mining and construction materials supplier Buildmax suffered a heavy loss for the six months to August due to a hangover from the global economic crisis, it said on Friday.

The company said the financial crisis had damaged the sectors in which it operated, creating an "adverse domino effect on the second-hand yellow metal fleet market worldwide".

The group's headline loss per share for the six months to August came to 4.7c from a 2.6c profit in the comparative period last year.

The total comprehensive loss for the six months to August was a staggering R336m, compared with a R33m profit earned in the comparative period last year.

Opencast mining services, the group's principal business, was highly dependent on fleet replacement and on securing reasonable prices for its second-hand equipment, the group said.

"The low levels of activity in global markets in the wake of the economic downturn have resulted in a surplus of second-hand equipment and vehicles, which has reduced second-hand resale prices by as much as 50%, to the detriment of the group," it said.

There would be little respite as the situation was expected to continue and a "substantial percentage of the fleet will have to be replaced in the next five years".

Buildmax had extended the useful life of its assets beyond their ideal replacement cycle ends, which had decreased production levels and caused maintenance costs to rise.

Mining services revenue plunged 32,9% to R488.2m from R728m for the same period last year.

Part of the losses included impairments of R140.5m to goodwill, intangible assets and equipment.

The group is the largest black- empowered opencast coal mining contractor in SA.

It incorporates Diesel Power Open Cast Mining, which is one of the largest opencast mining and earth-moving contractors in the country.