MIrabela Nickel’s S&P Rating Lowered

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.

Click here to read the full Reuters report.