ASX and JSE listed mining company Orion Minerals has provided an update on its actions in relation to the COVID-19 pandemic and its impact on the Company.
The company has implemented work-from-home protocols (wherever possible) from 13 March 2020 and continues to work closely with relevant authorities and key stakeholders to minimise risk and harm for all.
Considering the volatile and uncertain global economic and investment outlook, Orion has also implemented cost savings and asset preservation initiatives across its business.
All work sites have been closed and secured, and staff and contractors have been sent home until further notice.
While desktop work to finalise the updated feasibility study report for the Prieska Copper-Zinc project in South Africa’s Northern Cape Province is currently being completed by the study team working remotely, the company has evaluated the process and timing of its project finance activities in relation to the development of the Prieska project and has decided to postpone debt financing activities until global macro-economic and market conditions stabilise.
This action is (and continues) in compliance with the applicable laws and regulations and, where necessary, in consultation with the relevant regulatory authorities.
“While we have made the decision to postpone debt financing activities for Prieska until global market conditions stabilise, we are fortunate that the company will shortly be finalising its active feasibility study work and permitting activities, with a resultant reduction in spending requirements,” said Orion MD and CEO, Errol Smart.
“We will be able to weather the storm by reducing spending dramatically, while preserving a top-class, build-ready base metal project that can be activated as soon as global manufacturing and metal demand re-commences,” said Smart.
The company’s key focus is optimisation studies for the development of the Prieska project. Following the completion of the Prieska Project Bankable Feasibility Study in June 2019, Orion has been progressing optimisation studies and preparations for mine construction.
The outcomes of these studies are currently being incorporated into updated operating plans which will support the updated feasibility study report and determine the final finance and business case. Orion is targeting the completion of all technical and engineering work by early Q2 CY2020 to present and demonstrate the positive impact of the optimisation work.
In parallel with the completion of BFS optimisation studies, the company is also having exploratory discussions with parties, who have the potential to enhance project value through the introduction of a project-level strategic equity partner/investor in the Prieska project.
