12th May 2014 11:47
LONDON (Alliance News) - Kefi Minerals PLC Monday said its pretax loss widened in 2013 due to higher costs but the company continues to move towards production in 2016.
The gold and copper exploration and development company, with operations in Saudi Arabia and Ethiopia, said its pretax loss widened to GBP2.6 million from USD1.7 million the previous year.
The company, which is yet to produce any revenues, said its exploration costs increased to GBP148,000 from GBP93,000 but major part of its losses came from a GBP1.2 million charge on losses from its joint venture with Gold & Minerals Co Ltd.
However, Kefi Minerals said that, as a result of its acquisition of 75% of the advanced Tulu Kapi gold project in Ethiopia at the end of 2013, it has now set the foundations to move from its exploration phase to become a developer and producer of gold.
The company said it ended the year with 1.7 million ounces of attributable JORC compliant mineral resources and, since the end of the year has increased its Tulu Kapi mineral resource to 2.05 million ounces with 90% in its indicated category.
Kefi Minerals also said development drilling continues and mineralisation remains open in three of the five adjacent open pits at its Jibal Qutman Project in Saudi Arabia.
"We are on track this year to complete the Definitive Feasibility Study for Tulu Kapi and re-activation of its mining licence, and the submission of a Mining Licence application for Jibal Qutman. As a result of this, and the tight planning, the Board is confident of commencing production in 2016," Managing Director Jeffrey Rayner said in a statement.
Kefi Minerals shares were down 2.6% to 1.85 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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