01 Apr Australian Vanadium cuts executive salaries in COVID-19 safeguarding measures
Australian Vanadium has announced a business strategy to safeguard its financial health and preserve its vanadium project based in Western Australia during the COVID-19 (coronavirus) pandemic.
The company introduced cost reduction strategies that involved a 50% cut in salaries for the managing director and chief operating officer, along with reduced salaries for remaining staff after many were made redundant.
Non-executive directors and key consultants will also receive 50% less in fees with external consulting activity and field-based activities to be significantly reduced going forward.
Australian Vanadium described its current financial position as ‘healthy’, with more than $4.5 million in cash reserves following a capital raise last year. It is hoped that the strategy will ensure that the company emerges from the crisis in a strong position.
“We understand the concerns our shareholders have in these turbulent markets and have taken early actions to ensure a sound financial position is assured and that the company can continue to advance technical and project finance work,” said managing director Vincent Algar.
Australian Vanadium’s namesake project is one of the highest grade vanadium projects currently being developed in the world, according to the company. It has received a pre-feasibility study and the mineral resource estimate was updated last month.