Copper producer Austral Resources is back in the game after a period of receivership with the help of offtake partner Glencore Australia.
Austral announced the retirement of Deloitte as receivers and managers of the Austral group of companies yesterday, including Austral Resources Operations and Austral Resources Exploration.
Investment manager Wingate appointed Deloitte as managers of the receivership on May 2, but Austral’s directors are now back in control.
The company’s strategic offtake partner, Glencore Australia, acquired the senior secured debt from Wingate, and has assumed the role of senior secured creditor.
During the receivership, operations such as haulage, crushing and processing were uninterrupted and continue to be ongoing.
Austral’s Anthill and Mount Kelly run-of-mines in Queensland currently contain 300,000 tonnes (t) of ore ready for processing with an average copper grade of 0.73 per cent.
As of today, the inventory sits at 810t of copper cathode on-site, ready for sale.
Austral managing director and chief executive officer Dan Jauncey said the company has remained focused on maintaining production levels throughout the receivership period.
“This is a very positive outcome for the company, it puts us back in a strong position to move forward,” Jauncey said. “With copper prices and demand rising, we are entering a new era.
“The focus on restructuring Austral comes at an opportune time as the global market shows a robust appetite for copper.”
Austral is actively continuing discussions with Glencore and other secured creditors, with a focus on restructuring of the business.
Over the past week, the company said it has received multiple inquiries from potential strategic funding partners, but discussions and negotiations with these entities are ongoing.
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