Mirabela Nickel has disclosed that it has missed an interest payment on a debt structure as the possibility of a default looms for the struggling miner.
Mirabela said today that it did not make an interest payment due last week relating to $US395 million of 8.75 per cent senior unsecured notes due 2018.
The non-payment of interest will constitute a default is payment is not made within 30 days of its due date.
The company said that it was in full compliance with its continuous disclosure obligations and said that it would provide a further operational update later this month.
Mirabela suspended its shares from trading earlier this month.
The Brazil-focused miner downgraded its production forecasts for the second time in three months in a company update late last month and has since seen its share price plummet from 6.1 cents to just 1.6 cents at last trade.
Mirabela said last month that one of its two customers, Vorantim Metais Niquel, intended to close its smelting facilities from November due to the weak market conditions, terminating the concentrate sales agreement between the two companies at that time.
It also disclosed that it was operating at a cash loss, with an increase in unit cash costs to $US6.26 per pound for the September quarter to date, and a fall in the realised nickel price to $US5.97/lb.
Mirabela has flagged that Vorantim's closure of its facilities could trigger a default in a seperate $US50 million debt facility held by a Mirabela subsidiary.
The miner has subsequently seen its debt rating lowered by Standard & Poor's from B- to CCC+ and by Moody's from Caa3 to Caa1.