from mbn 2011 annual report

Financial strength
Our balance sheet was strengthened
during the year, through the successful
issue of $395 million of 8.75% senior
unsecured notes in the international
and United States Rule 144A debt
capital markets in April. A portion of
net proceeds from the notes were used
to pay down Mirabela’s senior and
subordinated debt facilities, terminate
nickel and copper call options as well
as interest rate and foreign exchange
hedges. We have now closed out all
our legacy hedge positions and are
now completely unhedged. As at
31 December 2011, cash on hand and
on deposit totalled US$61 million
Costs
During 2011, costs remained a major
focus of the management team.
However, a number of external factors
contributed to higher than budgeted unit
cash costs for the year. The expected
benefit of increased nickel volume and
an improved BRD/USD exchange rate
were offset by ramp-up inefficiencies
and industry cost pressures.
Unit cash costs averaged US$7.27
per pound of nickel for the year.
At steady-state, full production levels,
Mirabela expects to be an industry
competitive cost producer.
COST PRE POUND IS ONLY 7.27
AND YES THERE HAVE 61 MILLION IN THE BANK