PERTH (miningweekly.com) – Gold junior Millennium Minerals has worked to further reduce its debt, with the company aiming to be debt free by the end of March.
ASX-listed Millennium said on Tuesday that it had reduced its outstanding debt by another A$1.25-million in January, bringing its total debt to A$2.5-million under its senior debt facility.
CEO Glenn Dovaston said that the company was in an enviable position with strong gold production and cash flow, and a robust balance sheet, which would soon be debt free.
“Millennium is perfectly placed to capitalise on the current strong Australian dollar gold price. The significant progress we made with the Nullagine project’s operational performance last year and the success of our rapid debt reduction strategy means we are in a position to take full advantage of the current favourable gold price environment.”
Dovaston said that at the same time, Millennium also had the funding to drive its exploration programme to rapidly grow Nullagine’s mineral inventory and mine life.
The mine produced 91 462 oz of gold in the last year, delivering free cash flows of A$28-million, and leaving the company in a cash position of A$11.4-million as of the end of December.
Dovaston pointed out that Millennium had earmarked a significant portion of this cash to fund its exploration campaign within the project area.