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.
Comments
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