Gindalbie reviews value of Karara stake
PERTH (miningweekly.com) – Iron-ore miner Gindalbie Metals has called a halt to its share trading after revealing that it had commissioned an independent review into the value of its shareholding in the Karara asset, in Western Australia.
The review was called in light of the current iron-ore price, the high Australian dollar exchange rate, as well as the current capacity restrictions at the Karara operation.
The operation has yet to meet its nameplate capacity, and Gindalbie was forced earlier this year to secure a $300-million loan facility from China Merchant Bank to meet a funding shortfall to bring the project to capacity.
At the end of March, Gindalbie reported that a technical review into the project had identified the need for an additional 55-m-diameter tailings thickener, as well as the construction of a second wet tailings storage facility, and the installation of dewatering cyclones after the rougher magnetic separation stage.
The additional debottlenecking work was expected to allow the Karara project to reach its nameplate capacity of 8.8-million tonnes a year.
During the three months to June, 894 627 t of magnetite was shipped from Kagara, along with 1.1-million tonnes of hematite direct shipping ore.
Some 930 000 t of magnetite was mined at Karara during the quarter, while no hematite product was produced during the quarter.
Gindalbie said that given the ongoing work to assess and improve the production capacity and performance of the Karara operation, the company was not in a position to provide a production guidance or forecast of when the project would be cash-flow positive.
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