28th Apr 2014 11:45
LONDON (Alliance News) - Alba Mineral Resources PLC Monday said it swung to a pretax profit on administrative gains as it continues to look at new opportunities but warns on funding for exploration activities and upcoming Mauritania licence expiry date.
The uranium-focused exploration company, with operations in Mauritania, said it swung to a pretax profit of GBP499,433 for the year ended November 30, 2013 from a pretax loss of GBP205,529 the previous year.
The company, which is yet to produce any revenues, said it made a total administrative gain of GBP507,665 rather than an administrative expense of GBP186,340, which made up the majority of its swing to profit.
Alba Mineral Resources said the administrative gain came from a GBP592,688 exceptional item as the company waived director's fees and associated costs, and released certain provisions.
However, the company said it is dependant on securing further funds in order to continue its exploration activities and noted that due to current market conditions, it may struggle to raise the necessary cash.
It said that if it cannot raise funds, the carrying value of its exploration assets and the investment of the company in its subsidiaries are likely to be impaired.
Alba Mineral Resources added that its Mauritania licence expires in May 2015 and there is uncertainty over whether the licence will be renewed or extended beyond that point, which could lead to the GBP556,293 carrying value of the asset becoming impaired.
In March 2014, the company successfully completed a fund raising of GBP230,718 with an investor through the subscription of 92.3 million shares, representing 29.99% of its enlarged share capital, at a subscription price of 0.25 pence per share.
The company said it continues to review and discuss other value-enhancing opportunities outside its Ireland and Mauritania assets.
Alba Mineral Resources shares were down 20.0% to 0.200 pence, putting it in the top five AIM All-Share fallers Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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