The company introduced cost reduction strategies that involved a 50 per cent reduction in salaries for the managing director and chief operating officer, along with lighter salaries for remaining staff after many were made redundant.
Other measures taken include up to a 50 per cent decrease in fees for non-executive directors and key consultants, along with a cutback to external consulting activity and field-based activities.
Australian Vanadium stated that its current financial position was “healthy”, with more than $4.5 million in cash reserves due to a capital raise last year.
It is hoped that the strategy will ensure that Australian Vanadium emerges from the crisis in a strong position.
“We understand the concerns our shareholders have in these turbulent markets and have taken early actions to ensure a sound financial position is assured and that the company can continue to advance technical and project finance work,” Australian Vanadium managing director Vincent Algar said.
“The AVL team has proved its ability to maintain a strong presence in the market and we will continue to do this through this difficult period for the whole economy.
“The long-term outlook for vanadium and the Australian Vanadium project remains strong. AVL is committed to developing a world-class, low cost vanadium production mining facility and is well positioned to achieve it.”
Australian Vanadium plans to continue its high priority work, including native title negotiations; generating a new mining reserve using upgraded mineral resources; and completing vanadium roast-leach hydrometallugrical test work to finalise the project’s flowsheet.