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- Gascoyne Resources (GCY) halves its debt with major shareholder, Deutsche Balaton AG, due to strong gold production
- The company has prepaid $10 million from its $20 million convertible note facility, which was entered with Deutsche Balaton last December
- This prepayment will save the company approximately $3.1 million in interest payments over the next 21 months
- Gascoyne said the prepayment came from a record January production of 7,900 ounces of gold, which was backed by a strong February result
- Gascoyne shares were up 1.54 per cent, trading at 33 cents
Gascoyne Resources (GCY) has made big improvements to its balance sheet and halved its debt with its major shareholder, Deutsche Balaton AG, due to strong production from its Western Australian gold projects.
The gold company has prepaid $10 million from its $20 million convertible note facility, which was entered with Deutsche Balaton last December.
Gascoyne said this prepayment will save the company approximately $3.1 million in interest payments over the next 21 months.
This move was made possible from a record January production of 7,900 ounces of gold, which was backed by a strong February result of 6,867 ounces.
In addition, Gascoyne’s unhedged position has allowed it to capitalise on recent increases in the gold price, with an average realised price of A$2,582 an ounce in the March quarter to date.
“It is very pleasing that we are able to retire half of the convertible note through this $10 million prepayment to Deutsche Balaton AG,” Gascoyne Managing Director and CEO Simon Lawson said.
“Dalgaranga’s strong production performance for the quarter to date, combined with an unhedged gold position, has greatly improved our cash-generating ability allowing us to make this payment.”
The company is on track to deliver gold production of over 21,000 ounces for the March quarter, an improvement of more than 25 per cent from the previous quarter.
On the market, Gascoyne was up 1.54 per cent and trading at 33 cents per share at 11:34am AEDT.
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