26/08/2014 - 15:32

Mirabela faces uncertain future

26/08/2014 - 15:32

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Mineral explorer and developer Mirabela Nickel still faces uncertainty as a going concern after coming out of administration in June, on the back of lower than expected nickel prices.

Mirabela faces uncertain future
Mirabela faces an uncertain future.

Mineral explorer and developer Mirabela Nickel still faces uncertainty as a going concern after coming out of administration in June, on the back of lower than expected nickel prices.

Net profit was $US374 million for the six months to June 30, compared with a net loss of $US69 million for the same period in 2013.

But the company incurred a $US12 million gross loss for the period, with the difference largely driven by forgiveness of a $US395 million series of senior unsecured notes and more than $US40 million in interest.

It required a $US45 million loan to provide liquidity for operations, which accrued fees and interest over the six months to total $US60 million.

The loan was converted to a further series of convertible secured notes, and in late February the company entered administration.

Gross sales were $US95 million, with cost of sales of $US86 million.

The company sold 6,176 tonnes of nickel and 1,998t = of copper over the period, but says the market nickel price is below its break-even position.

Cash costs for production were $US7.85 per pound.

Mirabela’s sole asset is the wholly owned Santa Rita nickel sulphide mine in Brazil, which will have a life of 20 years.

Maryse Belanger commenced as chief executive on June 27 after the resignation of Ian Purdy in May.

Mirabela was up 5 per cent to 10.5 cents per share at the time of writing.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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