Queensland Nickel Needs Major Investment to Keep Afloat

Mining Weekly reported that Queensland Nickel Pty Ltd.’s administrators are searching for an entity willing to invest “tens of millions of dollars” to keep the company going past April.
As quoted in the market news:

FTI Consulting’s John Park told a teleconference on Friday that the company owed more than A$100-million to creditors and Queensland Nickel staff, of which nearly A$16-million worth of entitlements were due to the 237 employees made redundant earlier this month, before the company went into administration.
Park pointed out that at the current nickel prices, Queensland Nickel was expected to trade at a loss of some $30-million in 2016, with production expected to reach 60-million pounds of nickel.
He added that with its current bank balance, administrators could keep operations going for at least another two months.
“We’ve an ability to trade the business the next one to two months, based on nothing unforeseen happening. During that timeframe, we will be working with different stakeholders to formulate a restructuring proposal for the business, or a deed of company arrangement,” Park said.

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