28th Feb 2019 11:18
LONDON (Alliance News) - Beowulf Mining PLC on Thursday reported a widened annual loss as it continued with its legal proceedings to get an application for an exploitation concession for Kallak North in Sweden, hoping the newly-formed government will speed up proceedings.
In 2018, Beowulf widened its pretax loss to GBP1.4 million from GBP1.0 million in 2017.
The company's administrative expenses decreased to GBP598,391 from GBP658,610 but its exploration costs increased to GBP5714,456 from GBP183,131.
Beowulf did not generate any revenue in 2018.
The mineral explorer said its year was marred by trying to "navigate Swedish bureaucracy" in an attempt to secure a licence for its Kallak North iron ore project.
"It is good news that Sweden finally has a government, and that new Ministers are getting back to business. In recent months, the mining industry in Sweden has been in focus, with other mining companies, SveMin and IF Metall, one of the main unions, raising the issues of uncertain permitting processes for mining projects, and unacceptable delays in decision making by authorities," said Chief Executive Kurt Budge.
Beowulf said it remains committed to taking the Kallak North project forward.
The company believes China's move to restructure its own steel industry and tighten environmental controls have positively impacted the iron ore industry, making Kallak North all the more attractive.
Beowulf also noted the "spotlight" put on Swedish state-owned miner LKAB when it was considering shutting operations at Kiruna. Budge said: "We saw a spotlight put on the future of LKAB's operations at Kiruna, and with this attention paid to the importance of iron ore to Sweden. It highlighted the absurdity of the Kallak North application process, when authorities are unable to permit Europe's largest drill defined iron ore deposit."
Budge added: "Taking all this into consideration, new Ministers, a debate on the importance of mining and iron ore to Sweden, and Sweden wishing to portray itself as an attractive destination for mining investors, we have renewed optimism that a Concession for Kallak North will be forthcoming, without further delay."
Beowulf believes its 2019 will be a "busy year".
Shares in Beowulf Mining were down 3.5% Thursday at 7.38 pence each.
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