Eramet sees progress in nickel rescue plan, shares slide – by Gus Trompiz and Joseph Sotinel (Reuters U.S. – July 28, 2016)

French mining group Eramet says in results presentation on Thursday that a mix of cost savings, divestment and extra financing including a convertible bond issue will help its nickel unit in New Caledonia stem heavy losses.

Chairman and Chief Executive Patrick Buffet says planned 100 million euros convertible bond issue “is part of measures to return as soon as possible to positive cashflow” at New Caledonian nickel unit SLN.

Says bond issue will support financing after announcement of 200 million euro ($221.76 million) French government loan to SLN, and Eramet’s own commitment to lend up to 325 million euros to SLN up to 2018.

The company after market close on Wednesday reports an increased net loss of 141 million euros for the first half of 2016, and also announced plans to issue a 100 million euro convertible bond later this year.

Buffet says expects to conclude by the end of the year a “significant” divestment deal as part of a previously announced plan to sell assets, without giving details

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