The Bega Cheese Ltd (ASX: BGA) share price rose over 4% today after telling investors about a number of updates.
First, the dairy company said that Executive Chairman Barry Irvin has completed chemotherapy with positive results and prognosis. He intends to chair the Board meeting scheduled for 29 January 2020.
Next, Bega said it has extended the maturity on its facilities 4 and 5 to 30 September 2020 with its long-term financiers Rabobank and Westpac Banking Corp (ASX: WBC), the facilities have a combined capacity of $200 million. it has also extended existing covenant ratios to December 2020 which provides additional headroom.
Bega also said that the construction of a new lactoferrin facility at Koroit is on schedule to be commissioned in April 2020 and fully operational for FY21 which will add 35 tonnes of additional capacity, support by a long-term supply arrangement with a large international customers.
Finally, Bega is maintaining the forecast it provided in October with the review of direct and indirect costs to ensure Bega Cheese remains cost competitive.
Despite the extreme drought conditions and strong competition for milk amongst processors, Bega Cheese said it is well placed to execute on its long-term strategy while focusing on growth.
