Wiluna administrators looking at sale
PERTH (miningweekly.com) – The administrators of ASX-listed Wiluna Mining are looking to increase gold recovery from the Wiluna mine in the near term, while exploring recapitalisation or sale opportunities.
Following the first meeting of creditors on August 1, the administrators said that its intentions to continue operating the mine would be dependent on cash flows.
The administrators are also working with technical advisers to review the current mine plan and overall historical performance of the mine’s operations, saying on Monday that investigations into the reasons for the historical performance issues were continuing, as rectifying those issues would be key to maximising a positive outcome being achieved in the administration.
A dual track process is being followed seeking to implement either an asset divestment or recapitalisation. The objective is to maximise the chance of Wiluna, or as much as possible of its operations, continuing in existence; or, if not possible; an outcome that is better for creditors of Wiluna than immediate liquidation.
Prior to entering administration, Wiluna experienced production shortfalls and cost increases compared to its mine plan, while the underground mining operations were ramping up to full production, resulting in significant creditor build-up and stress on current working capital. As a consequence, production of gold concentrate was materially below forecast for April, resulting in a revision of forecast production for the June 2022 quarter.
The miner investigated other options to address the working capital deficit, both before and after the recent capital raising, and while some of these strategies assisted, ultimately, Wiluna was unable to bridge the funding shortfall.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Showroom
Rio Carb is an OEM (Original Equipment Manufacturer) of R-C700 Chromium Carbide (CrC) alloy clad wear plates and pipes used for heavy materials...
VISIT SHOWROOM
Industrial Nozzles & Systems (Pty) Ltd (Est. 2000) exclusive representative in Southern Africa for LECHLER GmbH (Est. 1879) - Europe's leading...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
