CAPITAL MARKETS

Sundance eyes restructure

Sundance appoints advisor to lead restructure

Kristie Batten

This article is 8 years old. Images might not display.

The company has appointed RFC Ambrian to assist in engaging with stakeholders regarding restructuring options.

RFC has engaged former Glencore head of iron ore assets Mark Eames to assist.

Eames will likely join the Sundance board if a suitable restructure is achieved.

Sundance has convertible notes on issue with a face value of $A93.5 million and a redemption value of $116.8 million.

There are $2.5 million worth of notes due in December to shareholder Hanlong Mining, but the remainder are due in September next year.

The company said there was no ongoing obligation to make interest payments, except for the Hanlong notes, which can be converted into equity at either party’s discretion.

Sundance is in discussions with stakeholders regarding the capital structure and reported it had received positive initial feedback.

The company also has more than 6 billion shares on issue after issuing more than 2.1 billion shares as part of an entitlement issue in March.

The raising was required to pay for a costly court settlement with former consultant, and now major shareholder David Porter.

Sundance closed March with $4.3 million cash.

Discussions with the Cameroon government and Chinese contractors are continuing regarding the rail and port infrastructure for Mbalam-Nabeba.

“Sundance has successfully faced up to the challenges of the past six months, including a severe downturn in the iron ore market, the conclusion of a complex litigation process and changes in the timing of the EPC contract for port and rail development,” Sundance CEO Giulio Casello said.

“The logical next step in responding to current market conditions and likely development timing is to ensure that the company’s balance sheet is appropriately structured.”

Shares in Sundance slumped 40% to 0.3c, equalling the all-time low.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

Mining Company ESG Index: Benchmarking the Future of Sustainable Mining

The Mining Company ESG Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.