9th Mar 2016 16:08
(Correcting that net loss for 2015 was GBP638,000)
LONDON (Alliance News) - Stratex International PLC Wednesday reported a narrowed loss for 2015, largely due to lower administration costs, but said it will be ramping up efforts to optimise production at its 45% owned Altintepe gold mine in 2016.
The gold explorer focused on Turkey and Africa reported a net loss of GBP638,000 for the year ended December 31, compared with a GBP2.5 million in 2014, as it cut administration costs by 20% and recorded no project impairments over the year.
However, the company would have seen profit over the year had it not been for the share of losses of associated companies, in which its interest is less than 50%, which amounted to GBP1.4 million, compared to GBP86,000 in 2014. Stratex said this loss mainly came from Thani Stratex Resources Ltd which had a loss of GBP1.2 million in 2015, including a GBP850,000 impairment write-off in respect of the Wadi Kareem project in Egypt.
Stratex ended the year with cash and cash equivalents of GBP4.1 million, down from GBP4.7 million at the end of 2014.
Separately Stratex said it had entered a new phase at the Altintepe gold mine in Turkey, in which it has a 45% interest, with the first gold pour having taken place on November 5. It said it was currently concentrating on forward planning to optimise the development of the remaining parts of the resource. Stratex added it remains confident it will see a recurrent cash flow in the current year from the mine.
However, Stratex said its interest in the Muratdere project had been diluted to 15% from 30%, after it was required to invest further sums in the project, but said it had not done so as the projected economics do not meet Stratex's investment criteria, due to the falling price of copper and other metals.
Stratex noted its associated company Goldstone Resources Ltd has increased its interest in the Homase licence in Ghana to 90% from 65%.
It said management were focusing efforts to find merger and acquisition targets with "the continuing depressed conditions in the junior mining sector" favouring Stratex, and it said it was looking specifically at West Africa.
"Looking forward, the outlook for the industry is far from rosy. Nevertheless Stratex is better placed than many of its peers. We continue to seek to reduce overheads and are making progress with this in Turkey, Senegal and with Goldstone," said Christopher Hall, non-executive chairman.
Shares in Stratex were down 14% at 1.52 pence on Wednesday afternoon.
By Hannah Boland; [email protected]; @Hannaheboland
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