10th Sep 2014 09:45
LONDON (Alliance News) - China Africa Resources PLC posted a slightly narrower loss in the first-half on Wednesday as the company pushes ahead with the development of the Berg Aukus mine in Namibia.
The company, which is not yet generating any revenue, said its pretax loss for the six months to June 30 was USD399,000, against a USD456,000 loss a year earlier, as the company reported no finance costs in the period, compared to USD74,000 last year.
The group said the losses posted were primarily due to the costs incurred managing its head office in the UK, along with an exchange loss on sterling and Namibian deposits. The company also incurred costs of USD100,000 from funding the pre-feasibility study at the Berg Aukas mine.
It said it had cash reserves totalling USD1.5 million at the period-end.
During the six months the company established commercial terms on the purchase of concentrates from Berg Aukas and completed the pre-feasibility study on the site.
China Africa said the study showed the mine to be a viable project and said it had net present values using a 10% discount rate of between USD49 million and USD51 million.
Chairman Cungen Ding said the company is working towards funding the next stage of development at the mine and is continuing to seek opportunities to expand its zinc and lead asset base.
China Africa shares were untraded at 19 pence per share on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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