Jul 03, 2020

MACA waiting for millions of dollars from Bluff PCI

MACA waiting for millions of dollars from Bluff PCI

Mining contractor MACA has revealed it is owed almost $80 million by Bluff PCI project owner Carabella Resources.

In a working capital update this week the company said the total receivables amount owing from Carabella Resources was $56 million, plus an additional working capital facility of $26.8 million.

“MACA continues to work with Carabella Resources to facilitate recovery of the outstanding balances,” the company said.

The Bluff PCI project is a 1.2Mtpa mine, located 20km east of Blackwater, and marked its first coal exports n July last year.

At that time the owners said more than 140 Central Queenslanders were employed by the project, operated by MACA’s contract mining division.

About 25 per cent of the employees were estimated to live in the local Blackwater and Bluff communities.

Wealth Resources is the parent company of Carabella Resources and Bluff PCI.

In its working capital update, MACA said the amount owed had changed little from December last year, when the total receivable amount owing from Carabella Resources for mining services was $52 million plus an additional working capital facility of $26.8 million.

“MACA had extended trading terms with Carabella in the first half of FY20
expecting these balances to reduce in the second half of FY20, as a result of both improved operating cashflow from the project and material equity injections from the client,” the contractor stated.

“Whilst the client has made equity injections into the project, these have been below the quantum previously advised to MACA, which coupled
with the lower coal price and some reduced demand due to COVID-19 impacts during the half, has resulted in the debtor balance remaining materially in line with the balance from December 2019.”

MACA said it remained in a position of strong liquidity, with $113 million in of cash and net debt of $74 million as at June 30.

This followed a significant capital investment into plant and equipment in excess of $110 million for the year.

Wealth Resources was contacted for comment by iQ but did not provide a response.