17th Nov 2016 14:00
LONDON (Alliance News) - GCM Resources PLC on Thursday reported a wider pretax loss in its last financial year due to it booking higher costs, but said it remains positive on the potential of the Phulbari coal and power project in Bangladesh.
The resource exploration and development company said its pretax loss in the year ended June 30 widened to GBP1.0 million from GBP937,000 the year before, as it booked higher finance costs and share based payments.
GCM said that the mining sector faced "significant challenges" in the year, but said it remains positive on the potential of the Phulbari project. Once developed, the project will be able to supply sufficient high-quality thermal coal to support over 4,000 megawatts of power generation.
GCM is negotiating with potential partners to expedite the project, and has agreed a memorandum of understanding with China Gezhouba Group International Engineering Co Ltd to mutually investigate the feasibility of a joint venture for the development of mine-mouth coal fired power plants at Phulbari. These would generate up to 2,000 megawatts at the project.
"Project implementation will mean substantial investment into the locality and we are committed to ensuring that the project is developed for the benefit of all stakeholders," Executive Chairman Datuk Tang said in a statement.
Shares in GCM were trading up 28% at 43.65 pence on Thursday afternoon.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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