3rd Jun 2014 08:43
LONDON (Alliance News) - Edenville Energy PLC Tuesday said its pretax loss widened significantly in 2013 as the company was hit by a GBP1.7 million impairment charge on the write-off of exploration expenditure.
The African coal exploration and development company, which is yet to produce any revenues, said its pretax loss widened to GBP2.4 million from GBP643,842 the previous year.
The company said its administrative expenses increased slightly to GBP638,868 from GBP598,415 but the majority of the company's losses came from an impairment charge of GBP1.7 million, as the company proposed to relinquish four licences which failed to show coal-bearing sediments, leading to the write-off of exploration expenditure at the sites.
In 2013, the company progressed from an exploration to an early stage development company, with its prime focus being the Rukwa coal deposit in Tanzania, which achieved an upgraded Measured and Indicated resource of 171 million tonnes of raw coal, with an additional 2 million tonnes in the Inferred category, as part of a resource report announced in September 2013.
In late 2013, Edenville entered into early stage discussions with potential Asian partners to develop the Rukwa site, and it has submitted an environmental impact assessment for the project in order to start a small-scale pit operation at the site. The company reiterated Tuesday it expects permissions to be in place in mid-2014.
Edenville Energy shares were down 11% to 0.0490 pence, putting it amongst the biggest AIM ALL-Share fallers on Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
EDL.L