27th Feb 2015 11:00
LONDON (Alliance News) - GCM Resources PLC Friday said its loss narrowed in the six months to end-December, and said it will seek to raise sufficient funds by June 2015 to enable it to maintain its operations for the "foreseeable future".
The resource exploration company, which is focused on developing its Phulbari coal project in north west Bangladesh, is yet to generate any revenue.
The company recorded a net loss of GBP461,000 for the six month period, compared with a loss of GBP518,000 in the first half of last year, supported by lower exploration and evaluation costs, and share-based payments. Capitalised evaluation costs relating to the Phulbari coal project in the period was GBP356,000.
"The government of Bangladesh has continued to pursue its long-term strategy of re-balancing the country's energy sector towards coal-fired power, which will substantially increase the in-country demand for thermal coal in the coming years. The company's coal project, a world class resource of 572 million tonnes, is well placed to meet the anticipated market requirements," the company said in a statement.
GCM said it will seek to raise "sufficient funds" by June 2015, which will allow it to maintain its operations. It said it is confident that a future fundraising will be successful.
"Over the next 12 months the board will continue pursuing approval of the project through its ongoing relationship with the Bangladesh Government while progressing community engagement activities," said Executive Chairman Michael Tang in the statement.
GCM shares were trading 0.2% higher Friday mid-morning at 11.77 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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