30th Apr 2015 17:16
LONDON (Alliance News) - GoldBridges Global Resources PLC Thursday reported a pretax loss in 2014 as revenue fell due to lower gold prices, but it said it is positive it will cope with any further downward pressure.
The company reported a pretax loss of GBP985,000 in 2014 compared with a pretax profit of GBP1.9 million in 2013, as revenue fell to GBP35.2 million from GBP42.4 million. Its sales of gold declined to 27,959 ounces, from 29,712 ounces.
The average market price of gold fell by 15% to USD1,198 per ounce in 2014, from USD1,418 in 2013, which GoldBridges said had an "inevitable impact" on profitability, particularly in the second half of the year. It said the current consensus is that gold will trade at an average between USD1,200 and USD1,235 per ounce throughout 2015.
"Given the economic model currently being developed by the company, we feel that the company has sufficient headroom in profitability to cope with any further downward pressure on gold prices," Chairman Kanat Assaubayev said in a statement.
Shares in Goldbridges closed down 1.9% at 2.60 pence on Thursday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
GBGR.L