Struggling CuDeco tries positive spin
Bank, with a solution to its cash woes “critically dependent” on successfully refinancing its loan facility.
CuDeco has committed to paying $US15 million in quarterly payments to the bank, with final payment due by December 31, 2017. Its total debt facility is $82.9 million.
It also is chasing other copper concentrate buyers willing to accept prepayment arrangements.
The company owes $10.7 million to trade creditors, $2.4 million of which is past due. CuDeco said it was continuing to trade with existing suppliers but had no formal agreements to defer payment of the past-due amounts.
It admitted its ability to continue was dependent on generating “significant” cashflows from production to meet commitments.
This also includes meeting agreed payment time frames under a remediation deed with a major supplier. As at December 31, CuDeco owed $31.8 million for construction and commissioning its Rocklands processing plant.
It agreed to an extended repayment period, paying instalments of $12.08 million over the next year, with the balance due by December 31, 2018. CuDeco conceded meeting its debt was dependent on “significantly’’ ramping up production at Rocklands.
Despite the troubles, interim Peter Hutchison moved to allay about the future.
In a production update, CuDeco said its Rocklands plant was “approaching monthly nameplate production rates” and production of copper concentrate in April was the “highest to date”.
“We are finally seeing Rocklands perform at levels financial chairman yesterday concerns we can be pleased with, however, we can improve on these further,” Mr Hutchison said.
“I can confidently speak for the board when I say we are extremely encouraged to see such a significant turnaround in the company’s outlook in such a short period of time.”
Newly appointed CEO Mark Gregory said Rocklands was “performing well” and “achieving important milestones”. “But we know it can perform better still and we will continue to pursue a program of ongoing improvement,” he said.