Aeris lightens debt load

AERIS Resources has enacted a tripartite restructuring deal to unchain its future, with a halving of debt, a reduction of capital and the freedom to ride the copper price as it looks further beyond the metal.

Aeris lightens debt load Aeris lightens debt load Aeris lightens debt load Aeris lightens debt load Aeris lightens debt load

Shareholders like the story with the shares soaring 35% in morning trade to A19c, valuing the company at $26.62 million. 

The copper producer has been hampered by it massive debt load, which was $136 million in 2013, before an earlier restructure in 2015, and a complex capital structure that made it difficult to raise capital and grow.

It expects to emerge from the latest recapitalisation with a much more digestible capital structure. 

“This is the best position the company has been in for the last five years,” chairman Andre Labuschagne said while selling the deal this morning.

“With debt reduced, potential shareholder dilution reversed, and the capital structure simplified, the company is now positioned to attract renewed interest from quality investors and ...