31st Mar 2016 12:18
LONDON (Alliance News) - AIM-listed Emerging Market Minerals PLC, a uranium, thorium, metals and gemstones exploration and development company operating in Madagascar, on Thursday said it made a loss in the first half of its financial year, due to "essential expenditure" required to maintain the "good standing" of its Marodambo project.
Its loss before and after tax was GBP100,000 in the six months ended December 31, unchanged from the corresponding half a year earlier. Other reasons for the loss were corporate running costs and expenditure associated with due diligence on potential new project opportunities.
Martin Nicholls, who was named executive chairman in December and provided a GBP100,000 working capital loan facility to Emerging Market Minerals on Wednesday, said the Marodambo uranium and thorium project in Madagascar remains on a "care and maintenance footing".
That is "pending receipt of the requisite environmental clearances and approvals from the relevant Madagascan government authorities in respect of the potential Phase 2 exploration work programme for the project," Nicholls said.
The executive chairman said the company is confident of securing additional working capital in the short term, as required. Emerging Market Minerals anticipates raising funds through equity or debt "to ensure that it maintains an appropriate capital structure and is able to fund its ongoing working capital requirements and potential future development opportunities."
"During the reporting period, the board has continued to identify and assess further potential opportunities to expand the group's asset portfolio in line with the company's stated strategy. Market conditions have once again proven to be extremely challenging for companies operating in the mining and natural resources sectors, such that the board has yet to secure a suitably compelling proposition, at a sensible valuation, to present to shareholders and potential investors to raise the requisite funding to pursue such an opportunity," Nicholls said.
Shares in Emerging Market Minerals were down 11% at 20.00 pence on Thursday.
By Samuel Agini; [email protected]; @samuelagini
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