30/03/2009 - 14:44

Equinox posts $254m annual profit

30/03/2009 - 14:44

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Shares in Equinox Minerals have closed higher on the back of a $US173 million ($A254 million) net income for the 2008 calendar year and a favourable restructure of its debt repayments.

Equinox posts $254m annual profit

Shares in Equinox Minerals have closed higher on the back of a $US173 million ($A254 million) net income for the 2008 calendar year and a favourable restructure of its debt repayments.

The consolidated annual net income compares with the previous year's net loss of $US29.4 million ($A43 million).

At the end of the reporting period, the company had cash resources of $US51.3 million and an undrawn contingent funding facility of $US45 million.

Additionally, Equinox expects to receive project insurance shortly following the fire at its Lumwana copper operation in Zambia in July last year.

Meantime, the company said it has reached agreement with its debt financiers to restructure the debt repayment schedule.

"The effect is that the 2009 calendar year principal repayments are significantly reduced to $US138.4 million, with $US104.4 million payable in September 2009," Equinox said in a statement.

The restructure follows a $US582.7 million senior finance facility struck in December 2006, which included a $54 million subordinated debt facility, $364 million senior debt facility and $164.7 million asset backed facility.

The company also signed an $US80 million extension to the senior debt facility following the first incident.

Shares in Equinox closed 21 cents higher at $2.40 after reaching an intraday high of $2.44.

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