CuDeco’s future still up in the air, needs to lock in long term funding
Mining & Resources
Hold tight ... Pic: Cliffhanger
Troubled Queensland copper producer CuDeco is prolonging the suspension of its Rocklands mine for another two months to implement a “comprehensive” operational and financial restructure.
The initial halt to mining and processing at Rocklands at the end of August was only supposed to continue until September 10 so CuDeco (ASX:CDU) could undertake critical maintenance work.
The company has been suspended from trading since March.
CuDeco has been in dire straits since December last year, when it was forced to suspend operations at the mine by the Queensland government after a number of safety issues were identified with the processing plant.
It then faced further disruption from extreme storms, which washed out a section of the access road to the Rocklands site.
CuDeco’s future hinges on being able to finalise long-term funding, which will also enable the company to complete its 31 December 2017 and June 2018 financials and resume share trading.
“Short-term funding challenges” has also seen CuDeco subsidiary Cloncurry Infrastructure default on a $2.8 million loan.
This has resulted in PT Kemala Shipping appointing a receiver to the entity, the company told investors.
Cloncurry Infrastructure owns most of CuDeco’s real estate assets in the township of Cloncurry, over which PT Kemala holds first ranking security.
“Directors believe that the long-term funding solutions currently being progressed as a key element of the operational and financial restructuring process outlined above will allow for this debt to be repaid in full, and for the receiver to be removed in due course,” the company said.