PERTH (miningweekly.com) – The ASX share price of Syndicated Metals fell by more than 50% on Wednesday after the company announced a new corporate strategy and strategic direction.

The two-pronged strategy was aimed at progressing opportunities to unlock the value of the company’s existing North Queensland copper assets, including the Barbara project, while also identifying and acquiring new resource assets and project opportunities outside the state.

The company said on Wednesday that, while a recent feasibility study at Barbara had identified a robust short-term openpit copper operation, the lack of economic treatment options in the Mt Isa region precluded a dig-and-deliver style development in the current copper price environment.

Syndicated’s efforts to extend the resource base at Barbara through regional exploration, in order to increase the potential of a standalone development, had also not yielded any low-cost, near-surface opportunities to delineate additional copper mineralisation, the company said.

As a result, the company had now agreed with its 50% joint venture (JV) partner CopperChem that it would pursue other avenues to realise value from the Barbara project.

Further, Syndicated announced a number of board, management and corporate changes as part of an ongoing cost reduction programme, with remaining management reducing their remuneration levels by 33%.

The Mt Isa office would also be closed, while the Perth office would be relocated to smaller premises. Syndicated would further employ consultants on a casual basis to meet its tenement requirements, JV and corporate and statutory commitments.

MD Andrew Munckton said the company had decided to act swiftly and decisively after reviewing the results of the Barbara feasibility study.

“While these are obviously difficult times for the junior resource sector, and it is disappointing and regrettable to have to take such steps to reduce our cost base, it is important that we move quickly to preserve our remaining cash reserves and place the company in a position where we can reposition for the future.”

The Barbara feasibility study, which was also released on Wednesday, indicated that the project would deliver some 16 223 t of copper, 2 753 oz of gold and 43 327 oz of silver over its 21-month mine life.

Ore would be transported to either Mt Isa or Cloncurry for toll treatment.

The study estimated that a capital investment of some A$32.1-million would be required, while operating costs have been estimated at A$76.3-million. The project was expected to have a pre-tax net present value of A$14-million and an internal rate of return of 87%.

Syndicated shares closed trading at 1c a share, down from an opening price of 2c each.