The company has re-evaluated the process and timing of its project finance activities in relation to the development of the Prieska Copper-Zinc Project in South Africa and made the decision to postpone debt financing activities.
Orion managing director and chief executive officer Errol Smart said: “While we have made the decision to postpone debt financing activities for Prieska until global market conditions stabilise, we are fortunate that the company will shortly be finalising its active Feasibility Study work and permitting activities, with a resultant reduction in spending requirements.
“We will be able to weather the storm by dramatically reducing spending, while preserving a top-class, build-ready base metal project that can be activated as soon as global manufacturing and metal demand re-commences.”
Feasibility work continues
Considering the volatile and uncertain global economic and investment outlook, and in line with its overarching commitment to safeguarding the health and safety of its people and the community at all times, Orion has proactively implemented work-from-home protocols (wherever possible) from 13 March 2020.
The company has also implemented cost savings and asset preservation initiatives across its business with all work sites closed and secured, and staff and contractors sent home until further notice.
Desktop work will be undertaken remotely to finalise the updated Feasibility Study Report for the Prieska Copper-Zinc Project,
Orion has also been progressing optimisation studies and preparations for mine construction with the outcomes of these studies are currently being incorporated into updated operating plans which will support the updated Feasibility Study Report and determine the final finance and business case.
Orion is targeting the completion of all technical and engineering work by early quarter two CY2020 in order to present and demonstrate the positive impact of the optimisation work.