15th Dec 2015 10:29
LONDON (Alliance News) - Kodal Minerals PLC shares dropped on Tuesday after it said it is still on the prowl for acquisitions despite admitting it is extremely difficult to source funding for its existing projects.
Kodal shares were trading down 15% to 0.0468 pence per share on Tuesday morning.
The exploration company operating in Norway reported a pretax loss of GBP274,971 in the six month period ended September 30, slightly wider than the GBP261,980 loss reported a year earlier.
The company, which does not generate any revenue, saw the loss widen on higher administrative costs and impairment charges, partially offset by a fall in share-based payments.
The impairments were booked against its Kodal project and the costs of exploration and evaluation work conducted there. The company said it has not been spending money on the Kodal project since booking impairments.
In the period, Kodal was focused on the Grimelo copper and zinc project where it completed a drilling programme. The company is still analysing those results but believes they warrant further exploration work, and Kodal said it may undertake a ground-based geophysics programme if market conditions improve and it can secure funding.
"It continues to be a very difficult time for mining and exploration companies. The market prices of most major commodities have continued to fall and appetite for funding exploration and development work is very limited," said the company.
"In this environment, the board has focused on controlling expenditure and making efficient use of the group's resources. Management continues to seek and evaluate other projects to add to the group's portfolio," it added.
By Joshua Warner; [email protected]; @JoshAlliance
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