Cim Resources In $190m Loan Talks
Sydney Morning Herald
Wednesday August 7, 1996
New-breed NSW coal producer CIM Resources is negotiating a $190-million loan facility to refinance existing borrowings and give it firepower on the takeover trail.
CIM's growth plans follow its successful entry into the NSW coal business from its Stratford mine in the Gloucester Valley, north of Newcastle.
Stratford began production in June last year and has underpinned the group's maiden annual profit of $8.2 million, reversing a previous $4.1 million loss. The strong showing has prompted the group to declare an unfranked dividend of 1c a share, covered by earnings-per-share of 8.42c.
The chief executive of CIM, Mr Michael Palmer, said the $190-million credit line being organised for the group would deliver a substantial reduction in group interest charges ($3 million in the June year).
The credit line also would provide financing for the development of the group's next mine, the Duralie project, 20 kilometres south of Stratford.
Mr Palmer said the credit line would help give CIM some firepower when it came to making an acquisition.
© 1996 Sydney Morning Herald