21st Nov 2025 14:31
(Alliance News) - GCM Resources PLC on Friday reported widening full-year loss and a need for financing to continue its operations as political upheaval in Bangladesh stalled progress for project development.
GCM is a London-based mining company focused on the Phulbari coal and power project in Bangladesh.
For the financial year ended June 30, 2025, pretax loss doubled to GBP2.1 million from GBP1.4 million.
This was driven by an increase in pre-development expenditure, which multiplied to GBP850,000 from GBP90,000.
The loss per share widened 17% to 0.7 pence from 0.6 pence. GCM generated no revenue, the same as the year before.
As of Friday, GCM said it has GBP922,000 in available cash resources, which is "not expected to be sufficient to support the company's operations for the twelve months from the date of this report."
The company said it intends "to explore alternative funding options over the next six months, with the aim to complete and secure the necessary third-party funding by the end of May 2026."
It added that "significant" additional financial resources will also be required to proceed Phulbari to development.
GCM said progress to secure the Bangladeshi government's approval to advance Phulbari was "materially affected" by the political disruption that began in mid-2024, causing delays and a subdued businesses environment.
The company added: "While the past year presented challenges, GCM has maintained strategic momentum, strengthened project fundamentals, and deepened government and stakeholder engagement. With national elections now in sight, the company remains focused on securing the necessary government approvals and advancing the Project toward development readiness.
"The Phulbari project remains Bangladesh's most advanced domestic coal initiative-with scale, infrastructure alignment, and strong economic returns. As the country approaches a democratic reset in 2026, GCM is well positioned to support Bangladesh's urgent need for energy security, industrial growth, and economic resilience."
Shares in GCM fell 4.4% to 5.50 pence on Friday afternoon in London.
By Roya Shahidi, Alliance News reporter
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