CuDeco reports Sept quarter results

31st October 2017 By: Ilan Solomons - Creamer Media Staff Writer

JOHANNESBURG (miningweekly.com) – Queensland copper miner CuDeco earned a positive earnings before interest, taxes, depreciation and amortisation of $3.3-million, gross revenue of $39.8-million and a net revenue of $30.8-million during the three months to September 30, the company reported on Tuesday.

CuDeco noted that its performance was impacted by a high US dollar to Australian dollar exchange rate averaging $0.79 for the quarter and unscheduled plant breakdowns in the month of August.

The miner produced a total of 4.1-million tons of material, comprising 980 432 t of ore and 3.2-million tons of waste.

The company said that the transition from mining services provider Emeco International to copper-focused modern mining company Oz Mining under a new mining contract to replace what would have been Phase 2 mining services in
the previous contract was achieved within a seven-day period with minimal disruption of mining activity.

After a short transition period, full mining capacity was restored, with a recent daily production record of 87 t total movement of materials being achieved by Oz Mining.

Meanwhile, the company failed to lodge its audited accounts within 90 days of the financial year ended June 30, and was in a state of voluntary suspended share trading until these accounts were lodged with the Australian Securities and Investment Commission (Asic) on October 25.

The late lodgement of the accounts and suspended share trading for a period of in excess of five-days, gave rise to technical breaches of the company’s financing facilities with Minsheng and Hong Kong-listed financial firm Quam, respectively. 

However, both financiers confirmed in writing that no further actions would be taken as a consequence of these breaches. 

CuDeco said it was currently negotiating with various parties, including an unspecified, major Australian bank, to secure a long term restructured finance facility.

The company met all its interest obligations with Minsheng, international private equity fund manager Valuestone and Chinese corporation Sinosteel for the quarter from funds generated internally.