Ann: Pluton Retires Receivers, page-12

Well wonders never cease..

From Paul Garvey, Resources Reporter Perth.
The Australian Business Review - March 25th 2015

"Resurrected iron ore miner Pluton Resources can go on to thrive even in the current low iron ore price environment, according to the Chinese trading house behind the company.

Pluton late on Monday announced that its receivers had been retired by its major shareholder and senior secured creditor General Nice Resources, less than five months after the miner collapsed.

The retirement of the receiver is a big step towards a resumption in trading in Pluton shares, with requotation likely to happen in one to two months once the company lodges its outstanding annual report.

Rahul Goel, the vice-president of projects and planning at Hong Kong-listed GNR, told The Australian in Hong Kong that he was confident Pluton’s Cockatoo Island mine off northern Western Australia could still operate profitably despite the ongoing slump in iron ore prices.

“Even at this iron ore price, Pluton works. The Aussie dollar is a big help,” Mr Goel said.

“Why we are still winners is all about logistics and grade. It’s high-grade iron ore with no infrastructure costs. There’s nowhere else like it.”

Unlike the much larger mines of the Pilbara, Cockatoo Island’s high-grade ore can be taken straight from the mine to the shiploader facilities without costly trucking or rail transportation.

The retirement of the receivers came after Pluton was able to strike agreements with almost all of its major unsecured creditors. The mine’s main contractor, Watpac, has agreed to continue working at Cockatoo Island and has agreed not to enforce any action to recover any amounts owing for up to two months.

Pluton collapsed last November after receivers were appointed by China’s Rizhou Group amid a dispute over offtake from the mine. GNR, as the senior secured creditor, responded by appointing its own receivers over the top of Rizhou.

Beyond the receivership, Pluton has also been in dispute with its joint venture partner Wise Energy over what the company says is the non-payment by Wise of its share of operating costs at the mine.

A third-party auditor is currently assessing what if anything Wise owes to the mine, and Mr Goel said GNR and Pluton would pursue Wise for any outstanding amounts that the auditor identifies.

“For shareholders’ best interest, we will do everything we can to get back an interest that we’ve already paid for.

“And we will use every lever of the law,” he said.

While Mr Goel would not expand on the options available to Pluton, it’s likely that the company would move to push Wise into administration if it cannot pay any amounts owing and take control of Wise’s 50 per cent stake in the mine.

Pluton’s steps towards recovery come amid a bleak market for junior iron ore miners.

Numerous smaller producers have fallen into administration over the past year amid a halving in iron ore prices."