23rd Jun 2015 08:11
LONDON (Alliance News) - Goldstone Resources Ltd Tuesday said its pretax loss narrowed in 2014 following on from the investment made in the company by fellow AIM listed Stratex International PLC.
Stratex International purchased a 33.4% stake in Goldstone during the year, prompting the company to make "significant change", including in its financial year which now ends on December 31. The results in 2014 are for the 10 month period ended December 31.
In that ten-month period, Goldstone reported a USD1.2 million pretax loss, compared to a USD1.7 million loss in the twelve months ended February 28, 2014. The company currently generates very little in revenue.
The loss narrowed after exploration expenses halved to USD325,823 from USD709,620 and other expenses dropped to USD892,060 from USD1.0 million. That was partially offset by net finance costs more than doubling to USD2.1 million from USD983,000.
Goldstone is currently focused on its assets in Ghana, whilst trying to secure joint-venture partners to further its other assets in Senegal and Gabon. Prior to completion of the Stratex investment, operational activities for the period remained "constrained" and were largely restricted to keeping the licences in "good standing", it said.
"The company will continue to explore its licence areas by making optimal use of the financial resources at its disposal. The Homase/Akrokerri project will enjoy the bulk of the company's financial attention due to its advanced status, and joint ventures with respect to the company's other licence areas will be sought," said Chief Executive Jurie Wessels.
Goldstone said that although its cash resources are adequate to fund its exploration until the end of the year, it will consider raising further funds in the future "with the purpose of progressing its projects but also to investigate potential opportunities for expansion in Ghana," it said.
Goldstone shares were down 1.3% to 3.01 pence per share on Tuesday morning whilst Stratex shares were up 3.3% to 1.55 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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