Hillgrove cuts salaries to navigate cash flow constraints
JOHANNESBURG (miningweekly.com) – The board, CEO, MD and employees of copper/gold miner Hillgrove Resources have agreed to salary reductions to help the company overcome cash flow constraints, chairperson Dean Brown reported on Thursday.
In an address delivered at Hillgrove’s annual general meeting, he reported to shareholders that board members’ fees had been reduced by 20% and that MD Steve McClare had taken a further 15% salary cut on top of a previously lowered salary. Employee salaries had been reduced by 10%.
Hillgrove is facing considerable financial challenges, owing to lower commodity prices and the performance of its Kanmantoo copper mine, in South Australia.
Besides the salary reductions, Brown reported that the company had taken several other steps to address its cash flow challenges, including asset sales, negotiating improved payment terms on sales of copper concentrate, operating cost savings and corporate cost reductions. Hillgrove had also received strong support from contractors and suppliers, he said, and added that the company was seeking assistance from the South Australian government.
Hillgrove warned on March 31 that its production for the 2016 financial year would be lower, as the company was unable to achieve its budgeted production levels at Kanmantoo. The company previously warned of a cash shortfall in 2016 and 2017.
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