SHAREHOLDERS in Copper 360 are facing the prospect of major dilution after the company said in an announcement on Tuesday it was in talks regarding “the introduction of additional equity capital”.Shares in the company fell 5% on the Johannesburg Stock Exchange, taking the year-to-date performance to -42%.Copper 360, which operates in South Africa’s Northern Cape, also said it was considering “a restructuring of long-term debt and other financial instruments on its balance sheet”. If achieved, this will be the second time this year the firm has rejigged its large debt pile.In April, the company restructured R267.6m in short term debt in which interest was linked to floating LME copper prices. The firm’s lenders also agreed to extend and convert the debt to convertible bonds. Of its R267.6m debt at that time, some R172.3m fell due in April, R15m on July 31 and R80.3m on February 28.Copper 360 has been under pressure after missing production targets last year. It previously forecast a jump in output for the year ended-February to 8,000 tons from 1,500t previously. Copper 360 also said it expected to hit steady state production target at 40,000 tons in copper concentrate a month this year and to double production in the next two.In May, Copper 360 hired gold industry veteran and former Minerals Council vice-president Graham Briggs as its new CEO. Briggs said Copper 360 had “a vast inventory of copper in the ground and proven processing capability that is scalable”.The post Copper 360 investors face dilution as new debt restructure planned appeared first on Miningmx.
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