30th Sep 2014 09:37
LONDON (Alliance News) - Metals Exploration PLC Tuesday reported a widened loss as it continues to focus on its Runruro project, which is expected to start production in the second quarter of 2015.
The company reported a pretax loss of GBP6.5 million in the six months ended June 30, widened from a GBP2.5 million loss in the first half of 2013.
The company does not currently generate any revenue and experienced higher adminstrative costs of GBP3.3 million from GBP2.5 million in the first half of 2013, alongside a GBP3.1 million fair value loss on derivative financial instruments which widened its loss.
"2014 is a critical year for the group as the construction of its first production asset reaches a peak and the group advances its production readiness status," said Chairman Ian Holzberger.
Its Runruno gold-molybdenum project in the Philippines is currently in the construction phase and moving towards commissioning in the second-quarter of 2015. Following commissioning it is expected that the project will ramp up to full production during the third quarter of 2015, it said in a statement.
At the end of August, the total project is estimated to be 62% constructed, it added.
The project is being funded by a GBP48.7 million debt facility that the company announced in May. To the end of August, two drawdowns have been completed totalling GBP14.5 million, it said.
Metals Explorations shares were up 3.6% to 7.25 pence per share Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Metals Exploration