Cohen(A.) & Co PLC
2 January 2001
NONFERRAL RECYCLERS LIMITED
Report to the Australian Stock Exchange 29th December 2000
The Directors of Nonferral Recyclers Limited wish to announce the following:
Issue of Convertible Notes.
1. That the Company has made an institutional placement of 2.4 million 60 cent
8.5% per annum Series 2 Convertible Notes to raise $ 1.44 million. The Notes
are redeemable if not converted by the 1st January 2003. The Notes convert into
fully paid ordinary Shares at the option of the holders on any of 1st January
and 1st July each year at the rate of two Shares per Convertible Note and are
fully participating. They have been issued to raise working capital and for the
continued expansion of the Group.
2. The Company has secured institutional interest in the issue of further notes
and will place before shareholders early in the New Year a request to renew the
placement authority and/or, subject to satisfactory market conditions and
arrangements, provide all shareholders with the opportunity to subscribe for
Notes on the same terms for which Stock Exchange listing would be sought.
Change in NSW Operations.
3. The Company has decided to expand its recycling and trading activities at the
NSW facility and reduce aluminium ingot production by taking two furnaces off
line. This will lead to improved margins and also reduce working capital
requirements in the short term as margins on scrap trading are currently
superior to margins on secondary aluminium ingot. The change will provide the
Company with more flexibility to add value through trading recycled scrap or
aluminium ingot production as prices and margins dictate similar to the manner
in which the Company operates its copper recycling and ingot manufacture. The
change will result in a one-off extraordinary charge associated with the change
in operations and a small number of redundancies which are currently being
negotiated.
For further information please contact
Royce Ritchie
Executive Chairman
Nonferral Recyclers Limited
Telephone: 03 9460 1211