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
MBN Price at posting:
52.1¢ Sentiment: LT Buy Disclosure: Held