Gympie creditors meet today

GYMPIE Gold is likely to remain in receivership and administration for at least several months, managing director Harry Adams told shareholders ahead of a creditors' meeting in Sydney today.
Gympie creditors meet today Gympie creditors meet today Gympie creditors meet today Gympie creditors meet today Gympie creditors meet today

Southland operation.

Staff Reporter

Gympie's shares have been suspended from trading since a fire erupted underground at its Southland colliery in the New South Wales Hunter Valley on Christmas Day, putting the company's future in doubt.

"The ultimate outcome of this process is for the company's shares to either re-commence trading or be delisted," Adams said.

Conditions underground were continuing to be evaluated and the best method to make the mine safe for re-entry determined.

Adams warned it may remain unsafe to re-enter the mine for a protracted period, and that it would be necessary to physically inspect the mine workings and equipment underground to estimate the cost to potentially re-commence production.

Meanwhile, Leighton Holdings said it was continuing to review the financial impact on its subsidiary Thiess, which has a 10% stake in Southland. The ultimate impact would be determined by whether the mine closes ore resumes operations.

It did not expect to have a more accurate assessment of the situation for at least a month.

Leightons said Thiess would be paid by Gympie's receivers and managers on a cost-reimbursable basis for its assistance in developing a plan for assessing the viability for resuming operations.

It said no damage to Thiess' wholly owned plant and equipment was expected and it should be recoverable following re-entry to the mine.