Kagara shares sink to record low

Company News

Shares in Kagara Limited (ASX:KZL) sank to a record low yesterday after the base-metal mining company said it would suspend a mine in Queensland to cut costs.

Kagara says its short term cash flow has been impacted because of a restructure of its banking arrangements.

As a result the miner has decided to suspend operations as the Baal Gammon copper mine as it completes the restructure of its business and working capital. 

Just last month Kagara announced job cuts, and the resignation of its founding chairman Kim Robinson, and offloaded its nickel assets to Western Areas NL (ASX:WSA).

Shares in Kagara have slumped 53 per cent this year, sinking 14.29 per cent yesterday to close at $0.12.

In the first half of the 2012 financial year Kagara booked a net loss of $49.785 million.