Shareholders sign-off on AOH’s A$80 million capital return

Published at Feb 11, 2015, in Mining

Altona Mining Ltd (ASX: AOH) has now received shareholder approval for a A$80.2 million capital return, following the sale of the company’s mining and exploration assets in Finland last year for approximately A$112 million.

After the capital return, AOH will have nearly A$50 million in cash and no debt with a focus on the development of its remaining asset, the Little Eva Copper Project in the Mt Isa region of Queensland, Australia.

“The Board of Altona has a view that companies exist to make money for their shareholders. Our purpose is to return cash,” AOH Managing Director Mr Alistair Cowden said, “We’ve been through a cycle, we’ve built, financed, paid back debt, sold the project in Finland and shareholders need some reward.”

“We think it is the right and proper thing to do; put the shareholder first and return some of that wealth to shareholders.”

“Cash is king in this market. The mining markets have gone through a very difficult time and it’s hard for companies to raise money. We have almost $50 million in cash and that is a powerful asset.”

Cowden said that the $50 million will be used to advance the Little Eva project in a “methodical and sensible way,” noting that the recent discovery success at the Turkey Creek prospect had prompted to revisit the feasibility study, mine plan and environmental work for Little Eva’s development.

However in terms of financing Little Eva’s development, AOH is still keeping all options open; discussions are underway to bring in a joint venture partner, but selling the project or merging with another entity is still on the table.

Systematic soil sampling and mapping across the Turkey Creek discovery and the proposed plant area is the first priority now as Altona increases its exploration efforts in Q1 2015. Cowden said this will follow onto the definition of targets for a subsequent RAB drilling in the near future in an effort to increase mine-life and scale at Little Eva.

Cowden said that copper markets are very simple and there is no demand crisis for copper, with a recovery in copper price to be expected soon.

A full interview with AOH Managing Director Mr Alistair Cowden can be viewed here:

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of Maven Capital Pty Ltd (AFSL No. 418504). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Facebook
Twitter
LinkedIn