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Reuters reported Standard and Poor’s has lowered Mirabel Nickel’s (ASX:MBN) credit rating to CCC+.
Reuters reported Standard and Poor’s has lowered Mirabel Nickel’s (ASX:MBN) credit rating to CCC+.
As quoted in the market news:
The downgrade reflects our view that Mirabela’s liquidity is likely to be inadequate to weather a prolonged period of negative operating cash flow while the company completes its nickel-processing upgrades and equipment modifications. Mirabela’s ability to reduce cash costs to US$6 per pound of nickel produced and a recovery in nickel prices to US$8.5-US$8.7 per pound will be crucial for the company to meet its near-term financial obligations. Nickel prices are currently at about US$8 per pound.