28th Aug 2020 14:53
(Alliance News) - Beowulf Mining PLC on Friday said it swung to a loss in the first half of 2020 when applying IFRS 10 provisions to its Vardar Minerals investment.
Shares in Beowulf were down 6.9% at 4.05 pence in London in afternoon trading.
The company - which has projects in Finland, Sweden, and Kosovo - reported a GBP394,475 pretax loss for the six months ended June 30, swinging from a GBP51,897 profit the year before.
Beowulf had previously reported a GBP434,626 pretax loss for the first half of 2019 but "applied the provisions of IFRS 10 from [April] 2019 to its investment in Vardar following a further increase in ownership, and consolidated Vardar effective of this date."
It explained that the main impact of applying International Financial Reporting Standards or IFRS 10 provisions to comparatives has been in the inclusion of the gain on acquisition GBP563,431 at April 1 plus the inclusion of consolidated operating costs of GBP78,926.
Beowulf invested another GBP300,000 in Vardar in August, post half-year end, increasing its ownership to 46% from 42%.
The company is still seeking a mining concession for Kallak. The Swedish government has been sitting on Beowulf's application for mining at Kallak since July 2017. The mine is located in a region of land resided by the indigenous Sami people, who have previously resisted further operations at Kallak.
Drilling as Kallak was planned for Autumn 2020 but has been delayed by Covid-19.
Chief Executive Kurt Budge said: "We had hoped to be drilling at Kallak this Autumn, but instead we will be focusing our attention on technical matters, resource and processing upsides, and moving the project forward in social and environment areas.
"Benchmark iron ore prices have moved above USD125 per tonne for the first time since February 2014 and iron ore is the best performing commodity this year. With the Swedish government back at work in early September, and with our legal advisors confirming we have done everything necessary to be awarded an exploitation concession, the government has no excuse for further delaying a decision on Kallak."
By Anna Farley; [email protected]
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