Vanadium hopeful TNG has moved to cut costs, slashing all directors’ fees and management salaries by between 10 and 20 per cent, and cutting five jobs in Western Australia and the Northern Territory.
Among the cost savings measures is a 50 per cent reduction on corporate and administrative spending, re-negotiating supply and contracting agreements and sub-leasing 50 per cent of its office space in WA.
TNG said it would also renegotiate arrangements with supporting contractors, to ensure its Mt Peake definitive feasibility study can be completed at a reduced cost.
Collectively, the efforts will save TNG around $1.8 million per year.
The company said financing discussions for the Mt Peake mine were ongoing, with TNG considering two scenarios that could deliver financial benefits and strengthen the project’s economics.
“We have taken these measures to preserve our strong cash balance and ensure that we can progress our key assets in a prudent, measured and focused manner to generate maximum value for shareholders,” managing director Paul Burton said.
At 12:45PM, WST, TNG shares were steady at 3.8 cents.
