Indo Mines: Yogyakarta mining, iron plant project not economically viable
Wednesday, October 1 2014 - 01:30 AM WIB
ASX-listed Indo Mines Limited said Tuesday that a financial analysis of its plan to develop the pig iron project in Yogyakarta, Indonesia, into a fully integrated mining and iron plant indicates the project to be not economically viable.
?The results of that financial analysis indicate that, on the basis of the current commodity price and cost inputs, the project is not economically viable. However, the analysis also indicates that the valuation is particularly sensitive to capital costs and financing structure,? Indo Mines said in a statement issued to announce the completion of the financial analysis and pre-feasibility study of the project, run by its 70 percent owned subsidiary PT Jogja Magasa Iron.
?The company is therefore evaluating various options to add value to the investment, including the ability to reduce capital costs and to enhance the financing structure, before it commits to a bankable feasibility study,? the statement added.
Indo Mines said it will also seek to reduce its operating expenses whilst it explores the various possibilities.
In line with this initiative, the company said it will also be streamlining the Board and consequently, Chris Catlow and Stacey Apostolou will be stepping down with immediate effect.
Editing by Reiner Simanjuntak