Forge shares punished again Forge Group's shares have been punished after the company announced another profit write-down that brings the total hit to its bottom line to up to $155 million in less than two months. The latest problems relate to a $23 million to $28 million cost blow-out at the West Angelas Power Station that Forge is building for Rio Tinto in Western Australia's Pilbara. It brings the total profit hits associated with that gas power station and its DPS gas power station in Mt Isa to $150-155 million following a $127 million write-down in late November. On Tuesday, Forge's shares came out of a two-day trading halt and plunged 30 per cent. But, by 1300 AEDT they had recovered to be 19 cents, or 15 per cent, down at $1.06, representing a $17 million fall in market capitalisation to just $90 million. Forge shares plummeted 84 per cent, losing $300 million in its market value, in one day in late November when the company came out of a three-week trading halt to announce the gas station write-downs and forecast an annual loss of up to $90 million. At that time, the ANZ Bank stepped in as creditors to rescue Forge from a cashflow crisis and possibly administration by increasing its debt facility from $11 million to $60 million, waiving covenants and repayments for nine months. However, the rescue deal gave ANZ warrant options over 13 per cent of Forge's shares which, if exercised, would dilute other shareholdings. Forge chief executive David Simpson said, in a teleconference, that Rio Tinto, the bank and Forge's other financiers continued to back the company and that the extra costs announced on Tuesday would come out of existing funds. He said the company had only uncovered the extra engineering and other needed work last week, and that it would delay the West Angelas project by three months. The plant is due to be completed by August this year. OptionsXpress market analyst Ben Le Brun said he thought Forge might need a capital raising. "The downgrade of the power stations was unfortunate as the new power division was expected to insulate the company somewhat in light of the broader mining slowdown," he said. The company had some good news, however, announcing that it had secured bonding facilities from financiers backing its recently won $1.5 billion contract with Gina Rinehart's Roy Hill iron ore project.