7th Oct 2013 10:46
LONDON (Alliance News) - South African pig iron developer Ironveld PLC Monday said its losses widened for the full year, as impairment losses affected the company's results.
The company posted pretax losses of GBP886,000 for the 18 months ended June 30, compared to a GBP253,000 loss for the 12 months ended December 31, 2011. After-tax losses, including losses from discontinued operations, amounted to GBP5.5 million, up from GBP41,000 in the previous period.
Ironveld said that, as it noted in its interims results published in March, it reviewed the carrying value of Mercury Recycling Limited and impaired the goodwill relating to the subsidiary in full. This impairment contributed GBP4.2 million to the after-tax loss for the period.
Total project mineral resource increased 40% to 59.1 million tons at an average grade of 36.4% iron, while Ironveld successfully completed a pilot plant campaign.
The firm said the campaign demonstrated the viability of smelting the Ironveld ore to produce pig iron.
Ironveld was re-admitted to AIM in August 2012 and in the process raised GBP3 million, which provided funding for an exploration programme undertaken during 2013 as well as working capital requirements.
The stock was trading at 14.00 pence Monday morning, down 0.50 pence or 3.5%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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