4th Mar 2015 09:21
LONDON (Alliance News) - China Africa Resources PLC Wednesday said its losses widened in 2014 as it incurred higher administrative costs, and said it is looking at its options to fund the next stage of development.
The company is engaged in the exploration and development of base metals, primarily lead and zinc, and owns 100% of the Berg Aukas mine in northern Namibia, Africa.
China Africa Resources, which is yet to generate any revenue, reported a pretax loss of USD833,000 in 2014, compared with a USD689,000 loss the year before. The loss incurred during the year consisted of costs relating to the running of its head office in London and associated listing and regulatory requirements.
During the year, the company said it was able to establish commercial terms for the purchase of concentrates from the Berg Aukas mine and completed the pre-feasibility study of the Berg Aukas mine. It said the pre-feasibility study of the Berg Aukas mine demonstrates it to be a viable project.
China Africa Resources also said it is currently reviewing options to fund the next stage of development, and continues to seek out opportunities to enlarge its lead and zinc asset base.
The company had USD1.2 million in cash reserves as at end-December 2014, having had USD1.9 million in reserves at the end of 2013.
Shares in China Africa Resources were trading 3.7% higher at 7.78 pence Wednesday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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