EMED Mining
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EMED Mining reduces capex for 2009, still plans restart of Rio Tinto in Spain
EMED Mining Public Ltd said it has reduced its cash expenditures for 2009 to the budgeted £5.6 million from £12 million in 2008 in its previously announced move to reduce spending levels whilst preserving its core assets.
The minerals exploration and development company with focus on copper and gold said it has cut staff numbers by more than 60 percent. Salaries of senior management have been significantly reduced and they will be compensated with enhanced incentive arrangements.
The group plans to strengthen its capital base by establishing a £5-£6 million convertible loan facility with major shareholders and said it is in advanced talks advanced with these shareholders and current convertible-debt provider YA Global. Should these negotiations be successful, a meeting of shareholders will be called to seek approval of the proposal.
Managing director Harry Anagnostaras Adams said: “It remains our objective to trigger the restart of Rio Tinto mine (in Spain) this year, obviously subject to permitting and the copper price recovering a little further. In Slovakia we intend to conduct low-cost testing of four porphyry prospects which appear analogous to our Biely Vrch discovery. The gold price is strong and our prospects in Slovakia are excellent.”
Broker FD Capital issued a note stating that it retains its ‘Buy’ recommendation for the stock and leaves its target price unchanged.
