Mary Kathleen finances “still critical”

Press, 24 August 1977, Page 23

Mary Kathleen finances “still critical”

NZPA Sydney Mary Kathleen Uranium, Ltd incurred an unaudited loss of sAustB,37B,ooo in the six months to June 30, and expects a further loss in the final half of the year. The loss compares with a deficit of $4,239,000 in the previous corresponding six months and a $12.4M deficit in the 1976 calendar year. “The company’s financial position was still critical, and its operations were dependent on continued availability of short term financing facilities,” the directors said. Contrary to the practice followed by most Australian; listed companies, the; C.R.A.-controlled M.K.U. did I

t not release full preliminary. , figures with their statement. 1 1 It is therefore not possible j; to show how M.K.U. arrived 1 at its latest loss, the extent ; of its borrowing commitments during the period, i nor the provision it has • been forced to make because : of its failure to meet its) t uranium contract agreement with the United Kingdom I Atomic Energy Authority. The standard half-yearly ■ report is made available. I In a statement prepared i by the board of M.K.U., the i directors say that continuing production problems had • affected output in the first; ijhalf, and the company would; :inot be able to meet its suptiply commitment this year;!

.Discussions on 1977 deliv- : eries with major customers ! had been satisfactorily com--1 pleted; long-term financing : arrangements were still be- ■ ing discussed with the , company’s two major share- : holders — Conzinc Riotinto ! of Australia and the Comi(monwealth Government —( ; : and discussions had been i held with the Australian In- , dustry Development Corpor- ) ' ation. Results in the latest half I year were abnormally s affected by production prob- : lems, and the increased cost i II of producing uranium oxide ;to replace that borrowed ' j from the United Kingdom i Atomic Energy Authority I last year.