Rns18 Jan 2023 07:39
The business has generated a positive EBITDA over the Quarter but timing of cashflows affects day to day operations. The copper price improved over the Quarter and two opportunistic forward positions which lock in a favourable margin were taken at US$8,330 and US$8,300 per tonne respectively with a strategy to take further positions when the market opportunity arises.
The start of 2023 has seen renewed optimism in the markets and the copper price has responded favourably. This further bolsters the viability of the Ming Mine operation.
The Board is confident that the total indebtedness in the Company is far outweighed by the intrinsic value of its assets and operation, notwithstanding the lack of working capital and the ongoing default in respect of the loan from NewGen.
We remain in conversations with several groups as we seek to restructure the finances of the Company. Central to this process is Newgen as our principal secured creditor. However, there can be no certainty at this stage that Newgen will agree to defer or reschedule the repayment of its loan. We will update the market on the outcome of our financing discussions in due course."