10/03/2009 - 10:30

Jabiru Metals reduces bank debt by $24m

10/03/2009 - 10:30

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Miner Jabiru Metals has paid down $US15.5 million ($A24 million) of its bank debt after closing out part of its hedge book while its Jaguar copper and zinc mine achieves record monthly production.

Miner Jabiru Metals has paid down $US15.5 million ($A24 million) of its bank debt after closing out part of its hedge book while its Jaguar copper and zinc mine achieves record monthly production.

Feeling confident after achieving full production capacity at Jaguar, Jabiru said it elected to pay down its bank debt which has reduced from $US25 million to $US9.5 million.

Jabiru said it applied funds from the close out of a portion of its hedge book, which retains 16,354 tonnes of "in the money" copper hedging at an average forward price of $US4,700 per tonne.

"The reduced cost operating structure resulting from recent production improvements reinforce Jaguar's ability to be cash positive at current spot copper and zinc prices before the impact of hedging," Jabiru said in a statement.

"The Company's cash position after debt repayment and monthly creditor payments, but before monthly sales receipts is $13 million. The Company has no outstanding concentrate provisional payment issues."

Meantime, the company produced a record 946 tonnes of copper and 2616t of zinc in February.

Jabiru has an annual production target of 8,000t of copper and 28,000t of zinc.

Shares in Jabiru climbed one cent to 11c at 12:43 AEDT.


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