Western Areas pays off A$95m debt
PERTH (miningweekly.com) – Nickel miner Western Areas on Wednesday retired a A$95-million convertible bond debt, using existing cash reserves.
MD Dan Lougher said that the repayment of the convertible bond debt, which had reached maturity, marked an important milestone for the company. He said that by retiring the debt with cash reserves, Western Areas' net profit before tax would improve by around A$12-million in the 2015 financial year, through reduced interest and bond accretion costs.
“Consistent with comments in the March quarterly report, and with a rising nickel price, cash flow generation has been particularly strong in the June quarter. This, combined with the reduction in debt, places our balance sheet in a very robust position.”
The nickel miner has one remaining convertible bond repayment, worth A$125-million, due in July of next year.
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