Production shortages caused by grade and strip ratio issues at the company’s Dalgaranga gold mine left the company facing significant cash shortages and owing its lenders over AUD100 million.
A team of experts at FTI Consulting was appointed to take over operations and oversee the recapitalisation required to underpin a turnaround strategy and reinstate the company on the ASX.
Gascoyne Resources Limited transitioned to a profitable and cash flow-positive gold mining operation, preserving underlying asset value for the benefit of all stakeholders.
After 16 months operating in administration, the company resumed trading on the ASX, transitioning from a company with an unknown future to a profitable gold mine that delivers consistent monthly production of over 6,000 oz.
FTI Consulting stabilised operations and oversaw the capital investment required to underpin a turnaround strategy.
FTI Consulting directors worked closely with all key stakeholders to ensure the safety of existing operations and prepare the business to undertake a dual-track sale and/or recapitalisation process.
The successful recapitalisation reduced the company’s debt to AUD40 million, increased working capital, and resulted in a strong balance sheet that supports growth.
The team overcame reconciliation issues and early-stage underperformance in shallower mining areas.
Adopting a new geological Resource Model, updating and optimizing the Life-of-Mine Plan (“LOMP”), and investing in an accelerated waste cutback of GCY Group’s main ore body, Gilbey’s Main Zone (“GMZ”), exposed more continuous and predictable tonnages of higher-grade ore.
Mid-Size Turnaround of the Year
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