GROUP 6 Metals has reassured investors and King Islanders they have taken steps to deal with a cash flow issue.
The company has received a cash injection of $8m through a bridge loan facility from investors and is expecting a $14m R&D tax cash refund from the ATO.
In response to local concerns, the ASX-listed company’s Managing Director and CEO Keith McKnight reiterated to the Courier:
“The Company has been progressing with the ramp-up of the Dolphin Tungsten Mine since early June, and while it has had challenges, the mine and process plant are operating much more consistently lately, and concentrate production is steadily increasing.
“This delayed ramp-up has put pressure on the company’s revenue and therefore the company has taken steps to support the company’s cashflow during this period by securing an $8m bridge loan facility from the company’s significant shareholders, again showing their support and commitment to the project.
“The company has also lodged a R&D tax cash refund with the ATO which is expected to be received imminently,” Mr McKnight said.
“The site team is also reviewing site operations seeking opportunities to assist the project cashflow during the ramp-up and initial operating period.
“This includes reviewing the open pit mine plan to bring higher-grade ore forward in the mine plan and reduce overall material movements during the first 24 months.
“Despite the increased operating costs, the project remains economically robust once it achieves nameplate production early in 2024.