South Manganese Investment Ltd. has announced a debt reduction proposal approved at a board meeting on June 4, 2025. The company plans to present the proposal for shareholder approval at a Special General Meeting $(SGM.AU)$. The initiative aims to enhance the company's credit rating, reduce finance costs, improve cash flows, and strengthen its capital structure. The proposal involves utilizing the group's available free cash flows to repay borrowings and optimize asset management, targeting a reduction of RMB300 million to RMB500 million in indebtedness annually. The goal is to lower the gearing ratio to 50% or below within the next five years while maintaining normal operations. A circular and notice of the SGM are expected to be dispatched to shareholders by June 30, 2025.
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