Data provided by iNet BFA
Loading...
See More

Anooraq gets lifeline from Amplats

Feb 02 2012 17:12

Related Articles

Amplats warns profit hit by BEE deal costs

Amplats gives Zimbabweans 10% stake

Amplats in R3.5bn BEE deal

Amplats on track to meet output targets

Amplats staff to get free houses

 
Johannesburg - Anglo Platinum [JSE:AMS] the world’s largest producer of the precious metal, has agreed to help boost production at Anooraq Resources [JSE:ARQ] Bokoni Platinum Mine through a new R2.6bn capital development programme.

This capital means the mine can now target 245 000 ounces by 2016, an increase of 100 000 ounces.
 
The new spending on the mine forms part of a restructuring, refinancing and recapitalisation deal unveiled by the companies on Thursday.

Essentially a lifeline for Anooraq, the new strategic plan ensures that Amplats shares in the mine’s potential, which is promising given longer-term prospects for the platinum price.

A series of interrelated transactions will see Amplats acquire Anooraq’s Boikgantsho project and the eastern section of the Ga-Phasha project for R1.7bn.

While this will be put towards repaying Anooraq’s R3bn debt to Amplats, the smaller company will still recieve up to R1.3bn under a consolidated debt facility.
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

Disregard of interest rate impact deplored

A Fin24 user protests what he sees as disregard of the broader impact of increased interest rates on those who cannot yet say "bring it on" with a smile.

 
 

Start saving...

No need to keep up with the Joneses
Where can you stash your cash?
Time the key for retirement saving
Dummy's guide to saving

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...