April 12 (Bloomberg) -- Kagara Ltd., an Australian base-metal mining company, tumbled to its lowest on record in Sydney trading after suspending a mine in the northeastern state of Queensland to cut costs.
The stock fell 14 percent to 12 Australian cents today, the lowest close since the Perth-based company went public in December 1999.
Kagara, which had a loss of A$48.9 million ($51 million) in the six months ended Dec. 31, suspended the Baal Gammon copper mine in Queensland, according to a company statement today. The move follows an announcement last month to halt an underground mine and exploration activities in the state after lowering its zinc and copper output target for the year. Kagara also sold its nickel assets to Western Areas NL for A$68 million in March.
“Kagara continues to review business operations and focus on core producing assets,” according to today’s statement. “This includes a restructure of its banking arrangements which have impacted Kagara’s short-term cash flow. As a result of this tightening of cash flow, mining operations at Baal Gammon have been suspended.”
The stock has declined 53 percent this year and is the second-worst performer on the S&P/ASX 300 index.
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