11th Dec 2015 16:31
LONDON (Alliance News) - ASA Resource Group PLC Friday reported a swing to a pretax loss for its first half, as a rise in gold sales were hit by weaker commodity prices, and nickel sales fell due in part to a planned shut down at its Trojan mine in Zimbabwe.
ASA Resource is a multi-commodity mining and development company with activities in Zimbabwe, the Democratic Republic of the Congo, South Africa and Angola.
For the half year to end-September the company reported a pretax loss of USD4.7 million, swung from a pretax profit of USD11.9 million a year before, as revenue declined to USD61.9 million, down from USD85.8 million.
The company said that its operating efficiencies are being addressed under a new mine plan which it believes will drive improvements in its nickel division in its second half.
"While the past six months have been a period of challenges, they have also been a period in which the company restructured and stabilised its management, operations and finances in preparation for future progress," Executive Chairman Yat Hoi Ning said in a statement.
"We have not been immune to the stresses that have emanated from the declines in virtually all commodities markets, particularly the global markets for gold and nickel, our principal products. Our response has been to sustain margins by containing unit costs by, where possible, simultaneously increasing production and maintaining tight control of overall costs," Yat Hoi Ning added.
Shares in ASA Resource Group were down 6.7% at 0.350 pence Friday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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