ASX-listed coal company, Stanmore Coal has taken steps to compensate for any production disruptions due to wet weather during the wet season, including a capital raising and changes to the short-term mine plan.
A key part of the wet weather contingency planning is a recently completed AUS$15 million equity raising. The cash will be used to “replenish the company’s working capital available for pre-strip and inventory stockpile build” at the Isaac Plains mine, the company said in an ASX announcement.
“This capital raising is an important step for the company to invest in pre-stripping activities and coal stockpiles in order to de-risk the business,” commented Neville Sneddon, Stanmore’s Chairman.
With the cash raised from the equity placement and additional capital from an undrawn US$6 million working capital facility from the private equity investment company, Taurus Funds Management, Stanmore “will have sufficient funding to cater for production outages” over the wet season, Sneddon added.
The company has also worked with its mining contractor to revise the mine plan at Isaac Plains, altering the short-term plan while maintaining the contract term production objectives. The company maintained its production guidance of 1.25 million t for the 2017 financial year.
Read the article online at: https://www.worldcoal.com/mining/14122016/stanmore-coal-prepares-for-wet-weather/