10th Apr 2015 10:04
LONDON (Alliance News) - Alexander Mining PLC Friday reported a narrowed pretax loss and an increase in sales for 2014, but said that while significant technical achievements were made, its commercialisation efforts were hindered meaning its results were not as high as hoped.
The company reported a pretax loss of GBP848,000 for the year ended December 31, narrowed from GBP1.4 million in 2013, on the back of sales growth to GBP507,000 from GBP26,000.
It said that after an encouraging start, the company's progress during 2014 was "not as rapid as we envisaged" due to the termination of the commercial licence, financing and consultancy agreement announced in February with it's largest shareholder the Ebullio Group. Alexander said Ebullio decided to terminate the agreement to acquire Red Crescent Resources in Turkey, and that they continue to have a close relationship.
However, after an "indifferent" year, it says it is "delighted" with its deal with Compass Resources Ltd in February, which will provide it with an AmmLeach licence and technical and management services for use at Compass's Browns Oxide copper-cobalt mine in Australia. It said the agreement will bring significant revenue to Alexander by way of upfront and ongoing services fess, plus a future production royalty.
Alexander also noted that Compass is currently working to complete a financing facility with institutional investors as the first stage in a proposed major refinancing and relisting of the company. The proceeds will be used to fund payments due to Alexander and for the third party AmmLeach pilot plant and feasibility study costs.
The companies expect to form a strategic alliance in Australia to investigate Compass's acquisition of copper resources which can be exploited using the Alexander's leaching technologies.
The company also announced on Thursday that its MetaLeach Ltd subsidiary has been granted patents in Botswana, Namibia and Zimbabwe for a zinc extraction method.
"Although global economic recovery is volatile and commodity prices have fallen significantly of late, the company will continue to work hard to succeed with the commercialisation of its technology. Indeed the weakness in most base metals prices during the last year and the deleterious impact on operating margins has led to an imperative for companies to cut costs wherever possible," Chairman Matt Sutcliffe said in a statement.
"In this environment, we believe that the scope for major operating and capital cost savings for existing and potential mines using our technology should be of ever greater interest. Particularly as the opportunity offered has significant environmental benefits," he added.
Shares in Alexander were down 7% to 0.65 pence on Friday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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