2nd Jun 2015 13:35
LONDON (Alliance News) - Bellzone Mining PLC Tuesday said its pretax loss narrowed in 2014 after it did not repeat various impairments and losses related to investments that were booked in 2013, and said it continues to explore various options in a period of "low-activity".
The iron, copper and nickel company operating in the Republic of Guinea reported a USD20.7 million pretax loss in 2014, significantly narrower than the USD156.5 million loss in 2013. The loss narrowed due to a number of substantial costs in 2013 not being repeated in 2014.
Bellzone booked USD772,000 in impairments, down from USD92.2 million a year earlier, and a USD28.2 million loss on an investment in 2013 was not repeated. In addition, exploration expenses fell to USD1.3 million from USD11.5 million and expenses related to employee benefits also dropped to USD7.8 million from USD14.6 million.
Operationally, Bellzone focused on "maintaining" its permits by meeting its obligations whilst trying to reduce costs as much as possible. The Guinean authorities have been reviewing all issued mining licenses during the year, which led to Bellzone having to submit additional information regarding the Kalia licence.
"The company will continue to engage with the Guinean authorities to ensure Bellzone's hard-earned reputation in Guinea as a good corporate citizen is maintained," said the company.
Corporate activity had been focused around financing, as Bellzone sought to secure funds to keep in business and also to secure financing to develop the Kalia license.
"The support of our major shareholder, China Sonangol International Pte Ltd, has enabled us to obtain financing to continue in operation whilst our not insignificant efforts to finance Kalia have not been successful to date," said Bellzone.
"During this period of low activity, we are exploring various pathways on how best to realise the full potential of Bellzone's world-class asset at Kalia and evaluating the potential of alternative strategies possibly available through the financial and strategic strength of China Sonangol," said Bellzone.
Bellzone shares were trading flat at 0.910 pence per share on Tuesday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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