NEW YORK Horsehead Holding Corp. has logged $1.3 million in cost savings that will be allocated toward its upcoming zinc smelting plant in Mooresboro, N.C.
"That $1.3 million would make up part of our cash balance, much of which is being used for the new project," senior vice president of corporate and environmental affairs Ali Alavi told AMM.
Horsehead has completed several hedging transactions to reduce the effect of zinc price fluctuations, the Pittsburgh-based company said Sept. 4.
"This move significantly reduces the effect of commodity price fluctuations on cash flow during the period while we complete construction and start-up of the new zinc plant," president and chief executive officer Jim Hensler said in a statement.
Zinc cash prices on the London Metal Exchange rose to more than $1,900 per tonne (86.2 cents per pound) in August, peaking at $1,950 per tonne (88.5 cents per pound) Aug. 16. The price has since fallen further, ending the official session at $1,868.50 per tonne (84.8 cents per pound) Sept. 6.
"We will look for an opportunity to convert the remaining put option positions should zinc prices rally," Hensler said.
Horsehead now is focused on completing the Mooresboro smelter, which will replace its Monaca, Pa., facility by the end of the year, the company said previously (amm.com, Aug. 5).