NZR
23/12/2014 11:04
GENERAL
PRICE SENSITIVE
REL: 1104 HRS The New Zealand Refining Company Limited
GENERAL: NZR: Refining NZ agrees deal for sale and leaseback of Platinum
Refining NZ (NZR) has entered into a contract with the Bank of Nova Scotia
(BNS) for the sale and lease back of process industrial Platinum, freeing up
funds of around $NZD 12.4m and which will reduce the Company's
financing/operating costs by around $NZD 500K per annum.
The arrangement has seen BNS, a leading provider of finance to the oil and
gas energy sector, purchase the Platinum and simultaneously lease it back to
the refinery. Refining NZ owned (and now leases) around 8300 T ounces of the
precious metal contained in catalyst within the refinery's Platformer
processing unit.
The contract with BNS is for an initial term of 12 months and provides
Refining NZ the option to extend the term and make further leases of
Platinum, including a lease of around 5900 T ounces in early 2015 for
catalyst in the Te Mahi Hou CCR unit.
Commenting, Refining NZ CEO, Sjoerd Post described the arrangement as another
good contracting and procurement initiative for the refinery: "taking
advantage of extremely competitive leasing rates has meant we've been able to
reduce our funding costs and improve the Company's Balance Sheet."
"This arrangement comes on the back of initiatives already undertaken to
strengthen the Balance Sheet and to lift our refiners' margin by around USD
0.66 - all of which is crucial as we head towards the completion of the $365m
Te Mahi Hou project in December 2015," he said.
ENDS
For further information:
Greg McNeill
Communications & External Affairs Manager
T: (09) 4325115; M: 021 873623; E: [email protected]
End CA:00259313 For:NZR Type:GENERAL Time:2014-12-23 11:04:01
