Altona clears debt ahead of schedule
PERTH (miningweekly.com) – Copper miner Altona Mining on Tuesday declared that it would become debt free after paying off its final $10-million debt facility, two years ahead of schedule.
Altona will have about A$16.5-million in cash by the end of March this year, with the miner telling shareholders that the debt removal payment was made possible by cash funded by the $8.3-million released from the closure of the majority of the company’s copper hedge book.
Some 1 751 t of copper remains hedged, at $3.36/lb to August 2014, providing cover for the current period of market volatility.
“The value of our euro-dominated copper hedging has increased significantly in the last few months, driven by falling copper prices and the strong euro. This has permitted Alton to repay its debt,” MD Alistair Cowden said on Tuesday.
He noted that the company had made a strategic decision that it was a stronger and lower-risk company when not encumbered by making debt payments until mid-2016.
“We retain a strong cash balance, remain profitable at Outkumpu and can take advantage of placing new copper hedging in a measured way to mitigate any downside in copper price,” Cowden added.
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