Delta sells gear to reduce debt

UNDERGROUND coal contractor Delta SBD Ltd has further reduced debt and improved its cash flow by selling equipment from the longwall mobile fleet and mining equipment assets.

Lou Caruana

The asset sales have helped reduce equipment debt to less than $1 million.

Delta SBD chairman Gordon Galt said details of the sales would be more extensively detailed in the annual report.

“The asset sale program has reduced debt and costs and improved cash flow by about $500,000 per month,” he said.

“The company is now in a position where the positive cash flow generated from operations will not be reduced by debt repayments and interest. We can now rebuild the company’s forward work book with a view to once more being a regular dividend payer as soon as possible.”