Pasminco Confirms Strong Cash Position

In response to media comments Pasminco today refuted any suggestion that it was technically insolvent.

Managing Director and Chief Executive, David Stewart said, “Any suggestion that we are facing a cash shortage is completely unfounded. We are meeting all of our commitments as and when they fall due. In addition, we have considerable flexibility with our lines of credit, and we are not exposed to any margin calls on our currency option program.

“In relation to the sale of Ernest Henry, we expect to receive initial proceeds of $115 million from MIM on 24 April. In the meantime, we are waiting on confirmation from Aquila that payment of the break fee of $3 million concludes the arrangements between us, before remitting the funds.”

“We fully appreciate the concerns of shareholders about the current low share price, and do not believe it represents fair value. We remain committed to lifting the Group’s performance and delivering the improvements outlined in the Business Improvement Program,” he said.



For further information contact:
Trevor Shard Group Manager - Investor Relations
61 3 9288 9186 or 0419 584 515

Peter Griffin Group Manager - Public Affairs
61 3 9288 0463 or 0419 314 265

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