TNG embarks on cost cutting measures

 Explorer TNG has become the latest company to implement across the board cost reductions as market volatility continues.

The ASX-listed junior on Thursday announced its multipronged strategy to reduce corporate and administrative overheads, as well as operating expenditures in an effort to preserve cash and optimise development strategies at its flagship Mount Peake vanadium-iron-titanium project, in the Northern Territory.

The company said it would save some A$500 000 through transferring management of the Mount Peake definitive feasibility study (DFS) in-house, with supporting contractors put in place to ensure the quality of the study.

The DFS was now scheduled for completion by the end of the first quarter in 2014.

Meanwhile, TNG has also announced that the fees and salaries of all directors and management would be reduced by between 10% and 20% across the board, while five employee and consultant positions have been made redundant.

Individual corporate and administrative expenditure has also been reduced by some 50% and TNG said it was evaluating its supplier and contract agreements for further possible savings.

The company has also subleased half of its office space in Western Australia.

The reductions were expected to deliver a collective annual saving of some A$1.8-million.

“All of this, combined with the positive recent outcome of the David Samuel case puts the company in a strong position moving forward,” said MD Paul Burton.

“We have taken these measures to preserve our strong cash balance and ensure that we can progress our key assets in a prudent, measured and focused manner to generate maximum value for shareholders.”

Besides the overhead costs, TNG was also considering alternative development scenarios to deliver its Mount Peake project, and was reviewing its other exploration assets.

The company noted that it was enthusiastic about the potential for the Mount Hardy copper project and would consider the potential avenues to progress the project to the next level. These options could include funding through a farm-in joint venture (JV).

Furthermore, a possible JV or sale of the Manbarrum zinc project was also being considered.