09/10/2013 - 14:09

Mirabela suspends shares from trade

09/10/2013 - 14:09

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Struggling miner Mirabela Nickel has suspended its shares from trading in the wake of a horror month for the company.

Mirabela suspends shares from trade

Struggling miner Mirabela Nickel has suspended its shares from trading in the wake of a horror month for the company.

Mirabela requested the suspension today as it prepares to update the market on its operations before the end of the 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.

The update included news 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 flagged last week that Vorantim's closure of its facilities could trigger a default in a $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.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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