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.
completed several hedging transactions to reduce the effect of
zinc price fluctuations, the Pittsburgh-based company said
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).