PNA SLASHES JOBS
Written on the 14 January 2015
PANAUST Limited (ASX: PNA) will cut down its workforce by almost five per cent, resulting in the job losses of 182 employees, with plans to continue on a redundancy streak.
The loss of 182 employees will pass down an annual operating cost reduction of approximately US$15.5 million.
Further to this, staff reductions are expected to occur during the course of the year due to a number of employment contracts expiring and natural attrition rates.
These decisions are the outcome of a recently implemented PNA business efficiency review.
PNA managing director Fred Hess says these decisions will ensure appropriate resourcing for sustainable operations into the future.
"The company is now in an even stronger position to meet the challenges associated with a weaker commodity price environment with all-in sustaining costs at our operations allowing for healthy margins at prevailing prices," says Hess.
"It is always a difficult decision to reduce staff numbers [but] by focusing on improving efficiencies we will maximise the value of our existing operations through enhanced margins and cash flow generation.
"Annual copper in concentrate production at Phu Kham is scheduled to increase by approximately 30 per cent over the next several years with no further project capital required, while the Frieda River Project is expected to sustain PanAust's copper business well beyond the next decade."
PNA's share price was down 8.9 per cent following the announcement at $1.32 per share.