Photo by: Reuters
PERTH (miningweekly.com) – Copper miner Tiger Resources on Monday announced that it would postpone the Phase 2 expansion of its solvent extraction and electrowinning (SX-EW) plant, at the Kipoi project, in the Democratic Republic of Congo, until it could strengthen its balance sheet.
The Phase 2 expansion of the SX-EW plant would double the nameplate rate of 25 000 t/y to 50 000 t/y.
Tiger said that while the expansion continued to represent a low-risk, low capital intensity growth option, with attractive returns, the company considered it prudent to postpone the expansion until the forecast balance sheet ratios comfortably supported the required capital expenditure.
The miner explained that postponing the expansion would enhance the balance sheet strength, as net cash flow from the existing production would reduce the level of net debt. Further, the current SX-EW operation would also continue to process ore from existing stockpiles at Kipoi, thereby extending the period before mining operations were started.
Meanwhile, Tiger also announced that it was reviewing the term sheets for its long-term financing arrangements with the aim of restructuring existing debt with longer-dated facilities.
Following the refinance, Tiger would re-evaluate the development timeline for the Phase 2 expansion.
In the meantime, the company would continue to focus on maximising efficiencies and cash flow from the installed SX-EW capacity at Kipoi.
Kipoi produced its first copper cathode in May this year and the SX-EW plant reached its nameplate capacity of 25 000 t/y in September.