22nd May 2015 08:10
LONDON (Alliance News) - Armadale Capital PLC is eyeing a gold project in the Democratic Republic of Congo after reporting on Friday that losses narrowed in 2014.
The AIM-listed investment company made a GBP1.1 million loss before and after tax in 2014, compared with GBP3.1 million in the prior year.
The company is targeting "low capex, low opex commercial gold production" in the first half of 2016 at the Mpokoto Gold Project in the Katanga province of the south of the Democratic Republic of the Congo
In a note to the broker's clients, FinnCap's Martin Potts said the numbers are of "little significance" because the company has no revenue.
"The company is planning to construct the Mpokoto gold project in the DR Congo, with first production planned for H1 2016. The estimated capital cost of the mine is USD20.4 million. We have reworked our target price and set a new figure of 0.1p per share, some 233% higher than the current price," Potts said.
finnCap is the company's nominate adviser and broker.
Shares in Armadale were down 6.5% at 0.0243 pence on Friday morning.
By Samuel Agini; [email protected]; @samuelagini
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