Jeu 10 Nov 2011 13:52
Click here to find out more! Albidon suspends operations at
After consultation with mining authorities, the West Perth-based miner today said it will halt its Munali mine as it switches its focus to strengthening its cash flow.
Earlier this year, Albidon announced less-than-budgeted nickel recoveries at Munali, which led the company to experience serious cash flow difficulties.
On top of that, the company has had to contend with the falling nickel price, which has dropped around 23 per cent in the past four months.
“Placing the company’s operations at Munali in suspension will allow the company’s scarce cash resources to be applied to the restructuring that is needed to improve Albidon’s efficiency in the future,” Albidon said.
The previously announced restructure involves re-organising existing finance facilities to reduce debt, attract new investors to participate in a capital raising, recruit new independent directors and new senior management.
Albidon today said that during suspension, all Zambian employees will retain their positions with full pay, while those seconded from China’s Jinchuan Group will be repatriated to China after helping with shutdown tasks.
The company has also secured a rescheduled payment agreement with mining contractor Byrnecut.
Albidon’s shares are expected to restart trading tomorrow, after a trading suspension was applied for in August before the restructure was announced.
Shares last traded at 7.5c.