Wednesday, 13th July 2005 (2712 views)

Emperor Mines has detailed new financial plans that will hopefully put an end to the company's recent cashflow problems and establish greater long-term security for shareholders.

The cash influx should see the successful production of around 650,000 tonnes of ore to deliver 145,000 oz of gold at the Fiji mine for the current financial year.

The plan will attempt to compensate for a loss of around A$18 million (£7.7 million) that the company has suffered over the previous year from ordinary activities before income tax.

An A$10 million (£4.3 million) convertible loan facility has been finalised with leading shareholder DRDGOLD, which owns 45.3 per cent of Emperor.

DRDGOLD will also be expected to provide management and technical services to the mining company as part of the package.

Further measures, such as an agreement with ANZ bank and the closure of Emperor's head office have also been set in motion as part of this restructuring plan.

Emperor chairman Mr Jim Wall seems very optimistic about the proposed changes, and commenting on the announcement said: "The board of Emperor is totally committed to restoring Emperor to positive cash flow and we are delighted that this package has been agreed."

Emperor has said it hopes the loan will result in a "sustainable, long-term future" for both the company and its gold mining operations in Fiji.

 

« Back to the stories

 

The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.