News

December 16, 2008

Rusina Lets Its Partners Carry The Costs On Its Philippines Projects As Direct Shipping Operations Are Put On Ice

By Our Man in Oz

Survival in tough times comes naturally to some people, especially those doing business in a high-risk, potentially high reward, country like the Philippines. Right now, the best example of a company trimming its sails to suit a foul wind is the Australian-based nickel and chromite specialist, Rusina Mining. It has a number of projects at different stages of development, research, and exploration. Each could be a company-maker, but all are structured in a way that minimises Rusina’s exposure to the downside. Either someone else is paying for the project and associated research work, or else the costs of exploration can be easily scaled back until metal prices improve. Unexciting as this is for investors, it ensures that Rusina will stay in business long after other companies have disappeared.

Rusina’s finance director, Mark Hanlon, says everything the company is doing today is dictated by a cautious outlook for base metal prices. “We simply can’t ignore the fact that now is not a good time to be thinking about a major mine development,” he says to Minesite, sitting in his office in Perth. “What we’re seeking to do is move our projects forward, but at the same time being very conservative with our cash, and have our partners spend funds on various projects. We’ve always been...