Metallica defers Sconi DFS to protect cash position
JOHANNESBURG (miningweekly.com) – ASX-listed Metallica Minerals on Monday announced that it would reduce nonessential project expenditure to conserve cash, in light of weakened market conditions and difficulty in attracting sufficient project funding or strategic partnerships.
Most notably, this meant that the resource developer would implement corporate and administrative cost reductions, as well as defer the proposed definitive feasibility study at its flagship scandium/cobalt/nickel (Sconi) project, in north Queensland.
In addition, no significant fieldwork was planned for the remainder of the year.
In the interim, Metallica would continue to pursue and explore project funding opportunities and offtake agreements for its Sconi and Weipa zircon/rutile projects, which would include identifying strategic investors.
It would also continue to actively progress permitting of its key mining lease applications towards their granting, as the majority of feasibility fieldwork required for the development of both projects had been completed.
MD Andrew Gillies said in a statement that the company was well placed to move these two core projects to the development stage.
“By deferring any major new initiatives, the company seeks to be mindful of preserving its important cash position and maintaining shareholder value through continued efforts to complete necessary permitting, and to develop important relationships for offtake and project participation,” he commented.
The value of Metallica’s combined and listed investments was around A$8.4-million, which it said would be boosted by an anticipated A$3-million research and development rebate. The company also had some A$5.4-million in ASX-listed investments.
The board would revisit its decision to reduce costs and defer project activities once it had secured further funding.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
ZF Aftermarket is the after-sales division of the world-renowned German ZF group, a global leader in mobility technology.
VISIT SHOWROOM
Complete range of security sealing solutions including security seals bags and labels.
VISIT SHOWROOM
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
