17/01/2014 - 13:17

MinRes confirms Christmas Creek plant price

17/01/2014 - 13:17

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Mineral Resources has confirmed the sale price of its Christmas Creek plant, saying Fortescue Metals Group will pay around $300 million for the processing facilities.

MinRes confirms Christmas Creek plant price

Mineral Resources has confirmed the sale price of its Christmas Creek plant, saying Fortescue Metals Group will pay around $300 million for the processing facilities.

FMG announced earlier this week it was purchasing the plant, from MinRes subsidiary Crushing Services International.

The purchase comes after two fatalities at the Christmas Creek mine in less than five months.

MinRes said today that the exact purchase price remained commercial in confidence, but the sale would not have a material impact on its full-year profit.

The company today maintained that its net profit for 2013-14 would come between $247.8 million and $252.8 million, in line with guidance released at its annual meeting in November.

MinRes said its balance sheet had been strengthened by the cash injection from the sale.

FMG, however, also claimed the sale would strengthen its balance sheet, saying earlier this week that the buy-out of the processing facility’s lease continued its debt reduction program.

At 1:00PM, WST, MinRes shares were up 2 per cent, at $10.99, while FMG's stock was also up 2 per cent, at $5.65. 

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