Bounty Mining Ltd.'s share price on the ASX dropped over 16% in late-afternoon trading as it slashed output guidance for the December quarter to 142,000 tonnes of salable coal from the previous guidance of 163,000 tonnes of salable coal.

The company also expects lower production, processing and distribution payment during its fiscal second quarter to A$35 million, compared to A$37 million expected previously, according to a Dec. 27 release.

The cash-strapped miner noted that it canceled two shipments of coking coal and one shipment of thermal coal in late December due to uncontrollable conditions, including bushfires in the Gladstone area, 24-hour industrial action and train crew shortages.

To meet its cash needs, Bounty secured a working capital facility of up to A$20.0 million from investment companies Amaroo Blackdown Investments Pte. Ltd. and Amaroo Blackdown Investments LLC, which hold a 17.51% stake in the company.

The investment companies are associated with Xcoal Energy & Resources GmbH, a key customer for Bounty's coal.

The proceeds will support operating the Cook colliery and Cook CHPP in Queensland, Australia, purchasing mining equipment for the Cook colliery and other purposes agreed by Amaroo, including repaying a prepaid sales agreement with Lido Trading.

The facility will be available for drawdown between Dec. 31, 2018, and April 25, 2019, with a monthly cap of A$5.0 million.

Interest will accrue at 8% per annum, and the facility will be repayable in full July 31, 2019, with an overdue rate of 12% starting Aug. 1, 2019.

Under the company's prepaid sales agreement with Xcoal, the pending delivery of 115,000 tonnes of salable coking coal will be rolled over into 2019.

A further 550,000 tonnes will be delivered in 2019, and Bounty and Xcoal extended the prepaid agreement to the end of 2020.

Meanwhile, outstanding prepayments of US$4.7 million will be converted to senior, secured debt Dec. 31, 2018, and will be due for repayment Dec. 31, 2019.