25th Sep 2014 09:35
LONDON (Alliance News) - Berkeley Resources Ltd Thursday reported a narrowed pretax loss after reducing exploration expenses, and said it does not expect to be profitable until one or more of its existing projects commences production.
Berkeley reported a pretax loss of AUD7.6 million in the year ended June 30, narrowed from a AUD11.1 million loss in 2013. This is primarily due to reducing exploration expenses to AUD6.9 million from AUD12 million.
It reported revenue of USD1.2 million in the 2014 financial year, down from USD2.2 million in the previous year. Its revenue came from asset sales.
"The group is currently undertaking exploration and development activities, and does not expect to be undertaking profitable operations until sometime after the successful commercialisation, production and sales of commodities from one or more of its current projects," said Berkeley.
Other than profit which may be generated from asset sales, if any, it does not expect to see profit come from anywhere else, said the company.
At June 30, Berkeley had cash reserves of AUD20.2 million, with no debt. "This puts the group in a strong financial position as it looks to complete the definitive feasibility study and progress the development of the Salamanca project. The company continues to maintain a strong focus on cost control across all areas of the business," it said in a statement.
Berkeley Resources is a uranium exploration and development company with a resource base in Spain. It is currently focused on advancing its wholly owned flagship Salamanca project.
The Salamanca project comprises the Retortillo, Alameda, Gambuta and Zona 7 deposits, plus a number of other satellite deposits located in western Spain.
Berkeley completed a preliminary feasibility study on Retortillo and Alameda, which demonstrated the project's potential to support a significant scale, long life uranium mining operation, it said.
The project can support an average annual production of 3.3 million pounds of triuranium octoxide during seven years of steady state operation, or 2.7 million pounds of triuranium octoxide over a minimum eleven year mine life, it added.
The company has subsequently commenced a definitive feasibility study for the deposits, to be followed by an evalution of financing options for the project to then move onto construction, leading to production, it said.
It will also continue to explore its portfolio of tenements in Spain with a view of growing the resource base whilst assessing new uranium and other business opportunities, it added.
"As with any other mining project, all of these activities are inherently risky and the board is unable to provide certainty that any or all of these activities will be able to be achieved," said Berkeley.
No dividend has been declared for the financial year to June 30, said the company.
Shares in Berkeley Resources were trading 1.9% lower at 1.57 pence per share Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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