23rd Sep 2024 09:59
(Alliance News) - Aterian PLC on Monday announced a narrowed loss as it highlighted that the long-term market fundamentals for copper, one of its target metals, are "excellent".
The London-based, Africa-focused mining company said pretax loss narrowed to GBP504,000 in the first half of 2024 from GBP858,000 a year before. The company reported no revenue, unchanged from a year ago.
Executive Chair Charles Bray said: "Our strategy focuses on responsibly exploring and developing critical mineral and metal resources across Africa, a region vital for a successful energy transition. The renewable energy, automotive, and electronic manufacturing sectors are currently driving the need to develop secure supply chains for critical metals. We firmly believe the long-term market fundamentals for copper are excellent and linked specifically to the anticipated growing demand for renewable energy and related transportation electrification globally. We also believe that long term supply demand dynamics bode well for lithium."
He added: "Unfortunately, Brexit has resulted in the fragmentation of UK and EU capital markets, which in turn has diminished the depth and fluidity of capital flows, especially for smaller capitalisation companies. The resulting reduction in share prices and market capitalisations has fed through sectors such as mining. These lower valuations hamper the market's ability to invest, even while increasing the opportunity set for those companies able to identify undervalued assets."
Aterian shares were 15% lower at 48.00 pence each on Monday morning in London. They are down 42% over the past 12 months.
By Tom Budszus, Alliance News slot editor
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