Resolute cuts back on debt
PERTH (miningweekly.com) – Gold miner Resolute Mining would accelerate the repayment of its A$15-million convertible notes currently on issue, as the company’s cash flow benefited from strong operating performances and a reduction in costs.
The notes represented Resolute’s most expensive debt and were no longer considered necessary to support liquidity.
The unsecured notes were issued in December 2014 at an issue price of A$1 each to raise gross proceeds of A$15-million, and were listed on the ASX. The notes had a three-year term and a 10% coupon.
The trust deed governing the convertible notes allowed for Resolute to elect an early redemption of the notes from December 2016 onwards. To redeem the notes prior to this date, the company would seek an amendment to the trust deed to change the early redemption date to June this year.
Resolute MD and CEO John Welborn said that the early redemption of the notes would save the company some A$2.2-million in future interest charges.
“Resolute is changing to become a company that is totally committed to our shareholders. Strengthening the balance sheet by debt reduction has been a priority as we prepare for investments in growth,” Welborn said.
He noted that in this context, Resolute’s operating performances at the Syama and Ravenswood mines, to allow for a rapid debt reduction programme, were pleasing.
“Our ambition is that at the end of June, Resolute will have strong cash and bullion reserves and total borrowings of less than A$30-million represented by unsecured subsidiary level debt.”
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
