Acacia Coal continues to focus on cost reduction as it explore a number of potential investment opportunities to deliver “more immediate value to shareholders that can be delivered by Comet Ridge alone”.
“Whilst the company has interrogated a number of opportunities, the company will not execute any related transaction until it considers such an opportunity to provide appropriate value to the company and its shareholders,” the company said.
The Comet Ridge tenements in the Bowen Basin offer the potential for coal resources amenable to opencast mining. It is located in the same region as the operating mines at Ensham, Jellinbah East, Blackwater and Curragh.
Acacia has, however, slashed spending on exploration and evaluation in order to preserve cash, with expenditure reduced to just AUS$72 000 in 2Q16. Acacia was also successful in completing a 50% concession on its expenditure commitments to Comet Ridge.
At 30 June, the company has about AUS$0.96 million in cash. Estimated cash outlays over the next quarter are expected to be AUS$0.16 million.
Edited by Jonathan Rowland.
Read the article online at: https://www.globalminingreview.com/finance-business/02082016/acacia-coal-focuses-on-cash-preservation-2016-2139/