1st Jun 2015 09:05
LONDON (Alliance News) - Beowulf Mining PLC Monday said it is confident of being awarded the exploitation concession for the Kallak North iron-ore project from the Swedish government as it reported results for 2014 and for the first quarter of 2015.
The Sweden-focused miner, which does not currently generate any revenue, reported a GBP3.1 million pretax loss in 2014, widening from a GBP2.2 million loss in 2013 because finance costs almost doubled to GBP2.0 million from GBP1.1 million.
"While the short term fundamentals for commodities look challenging and the economic outlook remains uncertain, the management team of Beowulf is still focused on creating value for shareholders, by first seeking an early and positive decision by the Swedish government on the application for an exploitation concession for Kallak North, and secondly by attracting the right partner for Kallak by demonstrating the quality of the orebody and its market potential as a high grade premium concentrate," it said in a statement.
Beowulf is looking to gain an exploitation concession from the government, and said that although the country's Mining Inspectorate said the company had fulfilled the prerequisites for the concession, the Inspectorate referred parts of the environmental aspects to the Swedish government. One of the problems regards the effect of the project will have on local reindeer husbandry and surrounding Sami villages
"It is the company's firm belief that having put in place systems to manage its future operations, and frameworks to address residual consequences, that mining and reindeer husbandry can coexist," said the company Monday.
"It is the company's belief that the exploitation concession application satisfies all the requirements of the Swedish regulations and that there should be no obstacle for an early and positive decision by the Swedish government in favour of granting the exploitation concession for Kallak North," it added.
Beowulf also released its first quarter results on Monday, reporting a GBP154,000 pretax loss which was narrower than the GBP264,000 loss made a year earlier. That loss was made up entirely of administrative costs which fell in the period.
The company reported a cash balance of GBP388,000 at the end of March.
"The award of an exploitation concession and our advanced understanding of Kallak North, and its market attractiveness, are important foundations for bringing in a strategic partner and investor. While shareholders are clearly focused on the Kallak North decision, we continue to work at creating value with our other exploration assets, and to look beyond for other opportunities within Scandinavia," said Chief Executive Kurt Budge.
Beowulf shares were up 4.9% to 1.60 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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