ASX-listed coal explorer Acacia Coal wound back spending on its exploration and evaluation work to just AUS$6000 in 1Q16 as the company continued efforts to conserve its cash reserves. According to its latest quarterly reports, total expenditure for the quarter totaled AUS$362 000, leaving the company with just AUS$973 000 in cash at the end of the quarter.
The company also said it was exploring alternative opportunities to “deliver more immediate value for shareholders than can be delivered by Comet Ridge alone”.
The Comet Ridge project in the Bowen Basin offers the potential for coal resources amenable to both opencast and thermal mining. It is located in the same region as the operating mines at Ensham, Jellinbah East, Blackwater and Curragh, which produce both thermal and metallurgical coal products. Acacia owns 100% of the project.
“Whilst the company has interrogated a number of opportunities, the board will not execute any related transaction until it considers such an opportunity to provide outstanding value to the company and its shareholders,” the company concluded.
The company has recently relocated its offices from Sydney to Perth and restructured its board and management in order to save cash.
Edited by Jonathan Rowland.
Read the article online at: https://www.globalminingreview.com/exploration-development/04052016/acacia-cuts-exploration-costs-to-the-bone-2016/