Photo by: Bloomberg
PERTH (miningweekly.com) – Copper miner Altona Mining has more than halved its debt after making an early repayment of $10.45-million on its debt facility, and reducing the balance of the facility from $20.45-million to $10-million.
The miner said on Monday that the debt reduction was funded by $5.05-million in cash and $5.40-million from the closure of the company’s gold hedge book. Copper and zinc hedging would be retained.
“The excellent performance of the Outokumpu project has permitted Altona to accelerate the repayment of its debt. Hedging has been reduced accordingly,” said Altona MD Alistair Cowden.
He noted that the repayment reflected the company’s success in Finland, where production was delivered on time and within budget, and exceeded feasibility forecasts in both tonnes and grade.
“Reserves exceed those available when the operation commenced in early 2012, and will grow further at the next update in February. We are a profitable and cash generative company with the potential for production expansion,” said Cowden.
He added that the company also intended to build on its success in 2014.
Altona now had some $10-million in debt remaining and A$18.52-million cash in hand. The company said that the remaining debt would be amortised over the period ending June 2016. The company also retained a hedge book until that time.