The use of continuous miners at Penumbra has placed Continental Coal under financial, reporting lower than expected production in recent months.
On account of this, Continental Coal has requested a voluntary suspension of its securities while it endeavours to complete a recapitalization. Continental Coal reports that it has been in active discussions with investor groups and creditors, but no restructure or refinancing arrangements have been agreed that are acceptable to all parties.
“Whilst the production will be augmented by the implementation of an additional conventional drill and blast production section, the ramp up of production from this is expected to take several months placing additional pressure on the company’s working capital requirement,” Continental Coal said in a statement.
Nevertheless, the appointment of a voluntary administrator to Continental Coal in Australia may be necessary, as it will have insufficient funds to meet the repayment obligations.