https://www.miningweekly.com

Australia's Metals X breaches loan covenants to focus on Tasmanian mine

13th July 2020

By: Reuters

  

Font size: - +

Australia's Metals X Ltd said on Friday it breached two financial covenants of a facility agreement with Citibank as it chose to go ahead with the development of the Renison tin mine in Tasmania.

The tin producer said cash flows will be hit by its decision to develop the mine, which requires spending of A$50-million to A$55-million ($34.77-million to $38.24-million) over the next two years.

That decision meant the company did not meet a forecast cash flow and a forward debt service cover covenant for the quarter ended in June.

Metals X has been locked in a shareholder dispute that has hurt the miner's ability to repay debt, forcing it to seek a buyer for its entire copper portfolio.

The miner said it has until July 20 under its current agreement with Citibank to come up with a way to meet its covenants or come to another agreement that the lender would accept.

It, however, met two of the other covenants of the facility agreement, the company said in an aftermarket statement.

Shares of the company were up 11.8% this year, as of last close.

Edited by Reuters

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

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?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION