The jobs of 117 people have been axed across Cape Lambert Resources’s Western Australian operations in response to plummeting iron ore and commodity prices.
Cape Lambert has also reduced exploration activities and has placed some non-core assets on ‘care and maintenance’.
In a further worrying move Cape Lambert’s Board has announced they would postpone the second dividend payment to shareholders scheduled for 27 February 2015.
In a statement Cape Lambert’s Executive Chairman, Mr Tony Sage said, “We have seen a sharp drop in the iron ore price in recent months, coupled with a downturn in market conditions for the mining sector as a whole. With these factors in mind, Cape Lambert believes it is prudent capital management to find genuine cost savings across its business and postpone the second dividend payment scheduled for February 2015.”
”I would like to emphasise that this is a postponement, not a cancellation of the dividend payment.”
Mr Sage also said ”Cape Lambert as a company is in a strong commercial position and taking these measures is sound management to protect the company in what is a hard time for the mining sector. However, Cape Lambert is confident that the iron ore price will recover in the near-to-medium term and the dividend payment can resume in due course.”
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