ENP Newswire -
Release date- 01052014 -
The prepayment reduces the outstanding balance of the facility to 170 million as at
The prepayment of debt reflects the strength of the operating cash flows being generated by the
A total of 210 million has now been repaid against the original 380 million DeGrussa Project Finance Facility with a total of 115 million repaid to date for FY 2014. A further 10 million is scheduled to be repaid on
Banking Restructure and Working Capital Facility
With the rapid repayment in debt achieved over the past 12 months, the achievement of steady-state operations and the recent satisfaction of the DeGrussa financing completion test, Sandfire has simplified its banking arrangements, moving from a syndicate to a single funding bank.
Accordingly, the Company has reached agreement to restructure its banking arrangements with
The Company has also secured a new 50 million working capital facility with ANZ which can be drawn down against the value of saleable copper concentrate inventories held by the Company at the mine and ports. This facility is designed to reduce the potential cash flow impact of timing of concentrate shipments and cash receipts. This new facility, which follows usual financing conditions, terms and pricing, is undrawn at
Sandfire's Managing Director, Mr
'This is a reflection of the strong operating cash flows being generated by the DeGrussa operation and the continued hard work and focus of our team,' he said. 'Following the recent successful bank completion test, we have also restructured our banking arrangements so they are better aligned with our current debt levels and cash flow requirements. I would like to thank ANZ for their continued support of Sandfire and also to acknowledge the members of our previous banking syndicate.'
'Looking to the future, we have also decided to put in place a 50 million working capital facility which can be drawn down against saleable copper concentrate. This is a prudent measure to assist inmanaging our cash flows.' 'Sandfire has now well and truly achieved its objective of reducing its gearing as quickly as possible and, with the DeGrussa operation running at steady-state levels, we have moved into a new phase of our life as a listed company where we have significant discretion on how to deploy our surplus cash.'
Tel: +61 8 6430 3800
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Certain statements made during or in connection with this statement contain or comprise certain forward-looking statements regarding Sandfire's Mineral Resources and Reserves, exploration operations, project development operations, production rates, life of mine, projected cash flow, capital expenditure, operating costs and other economic performance and financial condition as well as general market outlook.
Although Sandfire believes that the expectations reflected in such forward-looking statements are reasonable, such expectations are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward looking statements and no assurance can be given that such expectations will prove to have been correct.
Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, delays or changes in project development, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in metals prices and exchange rates and business and operational risk management.
Except for statutory liability which cannot be excluded, each of Sandfire, its officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in this statement and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this statement or any error or omission.
Sandfire undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events other than required by the Corporations Act and ASX Listing Rules. Accordingly you should not place undue reliance on any forward looking statement.
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