StockMarketWire.com reported that Moody's Investors Service has changed the outlook on the Caa1 corporate family and senior unsecured ratings of Mirabela Nickel to stable from negative.
Moody's said that the change reflects Mirabela's improved liquidity position resulting from the company's continued improvement in operating metrics.
Moody's assistant vice-president, analyst,Mr Matthew Moore said that "Mirabela has recently announced that it has significantly reduced its cash cost position for the second consecutive quarter. This combined with average nickel price performance has allowed the company to begin to generate operating cash flow and maintain its now solid cash balances. While the company is still highly exposed to volatile nickel prices, the reduction in cash costs to below USD 6.00/lb combined with the USD 160 million of cash available on Mirabela's balance sheet as of 30 September 2012 should provide adequate buffer to withstand a short term downturn in prices."
Moody's said that nickel prices seem to have stabilised at current levels having averaged around USD 7.50/lb over the last six months.
