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RAIDEN RESOURCES LIMITED — Capital/Financing Update 2014
Jan 28, 2014
65675_rns_2014-01-28_19581dfe-d966-4bc6-8862-a5e41fffb0f4.pdf
Capital/Financing Update
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ASX Code: SZG
29 January 2014
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ASX Announcement
Market Update
SubZero Group Ltd (SubZero) has today advised that it expects the Company’s sales revenue for the half year ending 31 December 2013 to be in the range $35m to $38m and EBITDA to be in the range $1.75m to $1.9m. This level of performance is approximately 10% lower than market expectations and was impacted by lower than expected volumes in November and December. Management has continued to focus on cost control and cash flow through this period of weaker demand.
Based upon first half results and a comprehensive internal and external review of forward sales it is expected that sales revenue for the full year will be in the $90m to $105m range with EBITDA in the $10m to $14m range.
Based on the run rate expected in the second half we continue to expect FY15 revenue to be between $150m and $175m with EBITDA between $24m and $28m.
Commenting on current conditions SubZero CEO, Mr. Scott Farrell said:
”Whilst we continue to be awarded new contracts and renew existing contracts with the major coal producers in the Hunter Valley, the ramp up of work, especially for our Structural and Mechanical businesses, has been slower than we anticipated. We expect to see our workload increase significantly over the next few months as the level of maintenance rises. Our long term view remains optimistic as production levels continue to rise, capital expenditure on new equipment falls and the need for ongoing maintenance increases.”
For further information:
Robert Lojszczyk
Chief Financial Officer P: +61 2 6540 9400 F: +61 2 6540 9444 M: +61 418 362 283 E: [email protected]
About SubZero Group Limited
The SubZero Group carries on an established mining service business based in the Hunter Valley, New South Wales. Its clients are almost exclusively involved in the Hunter Valley thermal coal mining industry. SubZero Group’s services include Mechanical Support (on and off-site mining machinery support), Structural Support (on and off-site engineering support) and Production Support (mining production support). SubZero has a presence in over 25 coal mines and over 90 clients including Rio Tinto, BHP Billiton and Xstrata. Further information can be found at the SubZero website: http://subzeroservices.com.au/