18th Jun 2014 15:32
LONDON (Alliance News) - African Eagle Resources PLC Wednesday said its loss significantly reduced in 2013, on the back of lower impairment charges on its assets and after it booked a gain through disposing of its most of its operating assets.
African Eagle, previously a nickel exploration and development company in Tanzania, which also had gold projects in Tanzania and copper projects in Zambia, reported a pretax loss of GBP3.3 million in 2013, compared with a pretax loss of GBP34.7 million in 2012.
In 2012, the company booked a GBP23.3 million loan impairment and a GBP8.5 million impairment of assets, compared with a GBP2.2 million loan impairment in 2013, when it also booked only a GBP46,789 impairment of assets and a GBP64,937 profit on the disposal of subsidiaries.
"2013 proved to be a very difficult year for your company which culminated in the sale of materially all of the assets in August 2013 as a result of being unable to raise further funding in the capital markets," the company said in a statement.
As a result, the company became an investing company under AIM rules and adopted an investing policy focused on looking for opportunities in the natural resources, infrastructure and services sectors.
"The sale of 90% of the assets in Tanzania resulted in the company no longer being exposed to the tax liability of approximately GBP600,000 in 2012. This, together with the cutting of corporate costs to the bare minimum to maintain the listing, redundancies, the mitigation of other potential
and actual liabilities and a placing to raise working capital has established a strong base for a renaissance in the company's fortunes," it added.
Earlier this week, the company said it had entered into an unsecured loan facility for up to GBP365,000 with its Chief Executive Nick Clarke and Chairman Kola Karim.
African Eagle Resources shares were trading 0.3% higher Wednesday afternoon at 0.376 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright 2014 Alliance News Limited. All Rights Reserved.