Mining News of Note Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Mining News of Note

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: LoneClone who wrote (36437)	5/1/2009 3:01:17 PM
From: LoneClone	Read Replies (1) of 193999

Straits Resources eyes acquisitions Rebecca Le May April 29, 2009 news.theage.com.au Straits Resources Ltd hopes to transform unloved assets with funds from the sale of a stake in its Indonesian coal and West Australian salt mining subsidiary. Straits on Tuesday completed the sale of a 60 per cent interest in its subsidiary Straits Bulk and Industrial Pty Ltd to Thailand-based energy major, the PTT Group of Companies, for up to $US335 million ($A470.35 million). The diversified miner has received an up-front payment of $US220 million ($A308.8 million) and the rest will be paid when milestones related to the Sebuku Island coal mine in Indonesia are met. "The cash proceeds of the transaction provide SRL (Straits) with the necessary financial resources to pursue attractive opportunities in the current market," it said on Wednesday. "The SRL management team have a solid track record of seeking and applying capital and expertise to undervalued resource opportunities ... and Straits intends to focus on this strategy more intently." Straits expects the performance payment, which relates to ore reserve upgrades, will be received in 2009. It is also reviewing its long-term debt financing requirements and repaid $45 million of ANZ and Macquarie Bank debt facilities after the PTT deal was completed on Tuesday. Straits reported total group sales revenue of $262.09 million for the March quarter, down from $411.12 million for the previous period. Copper, gold and coal sales fell but sales of antimony from its Hillgrove mine in New South Wales increased. The company said crushing activities at its Whim Creek copper mine in WA were finalised during the March quarter, bringing mining and crushing at the operation to an end. Straits flagged in November that it was reviewing the viability of Whim Creek and its Tritton copper mine in NSW after a plunge in the metal's price. The company said on Wednesday it would continue to closely monitor the economic viability of Tritton. It said cost cutting and the suspension of expansion mining activities in Tritton's northern ore bodies had impacted positively on operating costs. Shares in Straits closed 1.5 cents higher at $1.52.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next