African Minerals at Six-Year Low as Iron Ore Slump Drains Cash
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African Minerals Ltd. said it will probably breach debt covenants by the end of next year amid a cash squeeze at Sierra Leone’s biggest iron ore producer after a slump in prices led to a 93 percent drop in first-half profit.
The company is seeking to refinance a $250 million loan, which requires monthly repayments of $10.4 million, London-based African Minerals said today in a statement. It’s also seeking funds to provide “capital for ongoing operations and liquidity for capital expansion,” it said, adding that a previously announced $990 million cash injection by a Chinese trader was now unrealistic in the short term. The shares fell to the lowest since 2008.