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Trent Johnston – QLD Axemans Association Denyse Major and Keagan Freeman Taylor Malone and Aleithia Row Row fifo Port Construction Greg Byrne, Downing; Ian Reed, QNP Under 16 Girls with coach Miranda Baker (L-R)Channing, Cooper Collis, Kynan, Tanya Jeffrey, Jakyah-Lee, Jahli, Jurakai and Kaylee Doyle csg mine (L-R) Zander, Megan, Mac, Jonty and Wylie Philp NAIDOC Dancers A Grade Men's teams csg
Trent Johnston – QLD Axemans Association Denyse Major and Keagan Freeman Taylor Malone and Aleithia Row Row fifo Port Construction Greg Byrne, Downing; Ian Reed, QNP Under 16 Girls with coach Miranda Baker (L-R)Channing, Cooper Collis, Kynan, Tanya Jeffrey, Jakyah-Lee, Jahli, Jurakai and Kaylee Doyle csg mine (L-R) Zander, Megan, Mac, Jonty and Wylie Philp NAIDOC Dancers

ANZ backing out of Baralaba
COCKATOO coal hanging by a financial thread.
Wednesday 07 October 2015  

COCKATOO coal is facing another anxious week after the ANZ bank advised them they will not continue to provide the existing AU$81 million bank guarantee facility for their Baralaba mining operations.

In a written statement, Cockatoo Coal said it was waiting on final confirmation from the bank, as to whether that meant they were cancelling the facility altogether or just seeking changes to its conditions.

ANZ has indicated to the company that it is not willing to continue to provide the LC facility under the current arrangement,” Cockatoo said.

“Following receipt of that notice, the company should be in a position to further update the market on the likely timing and process in respect of the termination or any restructure of the LC facility.”

The announcement caps off a very difficult year for Cockatoo Coal who has struggled to stay viable in the face of plummeting coal prices.

In February, they were forced to massively dilute the value of shares in the company by issuing $125 million worth of new stock at just $0.02 a share, which was 86 per cent less than they were worth before they went into a trading halt in late 2014.

They have also scaled back development plans at their Baralaba expansion project, which involved large redundancies, pausing the CHHP construction and delaying the planned ramp-up to full exports of 3.5 Mt a year until 2018.

However, despite all those efforts, both their share and coal prices have continued to deteriorate, forcing the company to recently slash 86 per cent of its head office staff in Brisbane and nearly a quarter of those in Baralaba.

Nonetheless, the company's chairman, Peter Richards, said in the annual report released yesterday that the year was a breakthrough one for the company.

“2015 has imposed enormous pressures on Cockatoo Coal to adapt to the new market environment,” he said.

“Since the corporate restructuring in February, we have systematically reviewed all aspects of our business, and this review process has seen sweeping operational change at the same time as we have driven the timely development of the Baralaba expansion.

“The declining market conditions of 2015 demanded a comprehensive response, which came in jointly from the recapitalisation and the operational review.

“Anything less at that time would have risked Cockatoo Coal being unable to continue its operations.

“This made 2015 a breakthrough year, and we remain optimistic about the future.”


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