Gutnick disowns Nickel, Anglo disowns Anaconda
Big Anglo hit spooks market
By Sharon Kemp
THE financial future of WA's laterite nickel industry unravelled further yesterday after Anaconda Nickel's major shareholder, Anglo American, revealed it had taken a $US82 million hit on its 26 per cent stake in the Perth company.
Anglo's move coincided with receivers being called into Joseph Gutnick's flagship company, Centaur Mining & Exploration.
US bondholders, who are owed $US225 million by Centaur, yesterday called in receivers and managers a day after the company's board appointed voluntary administrators.
Meanwhile, investors' confidence in WA's $1.5 billion worth of laterite projects dissolved further to wipe nearly $100 million off the value of Anaconda Nickel, the only producer whose shares are still trading.
The market was spooked by Anglo American taking the charge on its Anaconda interest, a move that does not inspire confidence it will extend its investment.
Anglo bought most of its shares for $3.15 in October 1999.
Anaconda shares dropped more than 16 per cent yesterday to close at an 18-month low of $1.35, less than a third of its price six months ago.
Laterite nickel explorer Heron Resources, which owns reserves close to two of the projects, Cawse and Bulong, survived yesterday's sell-down as investors waited for a verdict on the future of the industry.
Heron shares finished unchanged at 28.5¢ as the market mulled over what role the small explorer could play in the evolution of WA's laterites.
Heron is reviewing a strategic alliance it has with Centaur over laterite nickel reserves that will underpin the expansion of the Cawse project, north of Kalgoorlie-Boulder.
Cawse is the best performer of the three WA projects, but Centaur was forced to stretch the forward gold sales book covering future gold sales from the nearby Mt Pleasant gold mine to prop up the cash- hungry nickel operation.
Gold earnings eaten away by hedging losses and forward gold sales and Centaur's difficulties meeting repayments to bondholders combined to create a severe cash squeeze.
It forced the company to miss two crucial deadlines to replenish a $US12.4 million debt reserve account used to pay US bondholders.
The crunch came on Wednesday after Centaur was unable to negotiate an extension.
Centaur appointed administrators Lindsay Maxsted and Stephen Hawke, of KPMG.
Yesterday morning, bondholders followed the move by appointing receivers Allan Watson and David McEvoy, of PricewaterhouseCoopers.
PwC staff were understood to be evaluating Mt Pleasant and Cawse yesterday afternoon and had moved into Centaur's South Melbourne office.
Mr Gutnick said the office was owned by one of his private companies, to which PwC has no recourse, therefore he would not move out.
Nor did the receivers have recourse to Mr Gutnick's family company Edensor Nominees or his network of exploration companies.
Mr Gutnick lamented his investment in nickel, claiming the laterite industry was in crisis. "I wouldn't get into nickel again, and it is in Centaur's interest to divest of Cawse," he said. |
