Beach mineral sands miner Mineral Commodities shores up balance sheet

MINERAL Commodities has raised A$6.5 million to shore up its balance sheet after a dispute with a customer and the impact of COVID-19 put the mineral sands miner under financial pressure.
Beach mineral sands miner Mineral Commodities shores up balance sheet Beach mineral sands miner Mineral Commodities shores up balance sheet Beach mineral sands miner Mineral Commodities shores up balance sheet Beach mineral sands miner Mineral Commodities shores up balance sheet Beach mineral sands miner Mineral Commodities shores up balance sheet

MRC's Tormin operation in South Africa

The new equity is being priced at 20c per share.

Earlier this month, Mineral Commodities said a technical dispute has arisen with GMA Garnet (USA) Corp regarding stockpiled inventory quantities, with the miner having a life-of-mine garnet offtake agreement with GMA and Garnet International Resources for production from its Tormin operation in South Africa.

The miner also reported softer demand from Chinese ilmenite customers on account of the coronavirus pandemic.

Mineral Commodities said at the same time its balance sheet consisted of US$18.6 million in current account receivables, including $11.7 million owing from GMA Group, with $8.6 million past due for payment, and other diesel fuel rebate and VAT recievables from the South African Revenue Service.

It also said it had a carrying value of $18.3 million of stockpiled garnet inventory to be delivered under the GMA LOM contract.

Shares in Mineral Commodities closed unchanged at A24c, capitalising the company at $101 million.

The stock was at levels around 18c this time last year.

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