14th May 2018 11:22
LONDON (Alliance News) - Beowulf Mining PLC said Monday its loss widened significantly last year due to higher administrative expenses, as well as impairments.
Pretax loss widened to GBP1.0 million in 2017 from GBP633,229 the year before.
Administrative expenses rose to GBP861,669 from GBP638,573. Additionally, a GBP183,131 impairment was taken against costs associated with the closure of two of Beowulf's mining projects, Pippumaki and Nautijaur, both in Sweden.
Beowulf recorded no revenue in either 2017 or 2016.
Of particular note was Beowulf's Kallak mining project in Sweden, which has stalled as it awaits a government decision. The company has not been given a definitive timescale for the decision, but Beowulf noted Monday that Swedish elections could delay it further.
The company has already invested SEK77 million, about GBP66 million, in Kallak, and Beowulf Non-Executive Chairman Goran Farm responded to concerns about the project's future.
"Kallak is an important project, and it is right that the government takes its time to be thorough in its review, and to complete a rigorous and objective assessment of the facts," said Farm.
"Though shareholders may be frustrated with no definitive timeline for a decision, Kallak is an important project for Jokkmokk and the County of Norrbotten and should be treated with the care and attention it deserves, and an observance of due process," he added.
Beowulf Mining reported no revenue for 2017 but remained optimistic in its outlook, saying that it was "maintaining a keen eye" on merger and acquisition opportunities.
Shares in the company were down 7.6% Monday at 6.70 pence each.
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