Australian-listed Silver Heritage Group says it expects its Nepal integrated resort, Tiger Palace Resort Bhairahawa, to break even by 3Q18. But it will need to do so alongside a new local partner, with the company admitting that its relationship with its current partner has “run its course.”
The news formed part of an investor presentation by Silver Heritage CEO Mike Bolsover and interim Chairman Matthew Hunter at the company’s annual general meeting last Friday, which included the latest performance updates from Tiger Palace Resort.
In particular, Silver Heritage outlined the “challenging” operating environment over the past 12 months, with Hunter revealing that the board had agreed to halve its cash remunerations this year as part of “a range of cost reduction initiatives across the business.” Nevertheless, it said that Tiger Palace had broken even in April and expected to achieve monthly breakeven during 3Q18.
In the meantime, Hunter said that finding a new local partner was among Silver Heritage Group’s key priorities.
“It is clear that the relationship with our local partner in Nepal has run its course,” he said. “Several high quality parties have expressed interest in partnering with us in Nepal. The company is actively engaged in discussions in this regard and will update the market as and when further progress has been made on this.”
The company’s current Nepal partner, Rajendra Bajgain, was recently granted a stay of termination by a Nepal court after Silver Heritage terminated his agreement in February. Bajgain had publicly accused the company of failing to acquire necessary work permits for some senior staff at Tiger Palace Resort Bhairahawa.
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