29th Nov 2024 09:50
(Alliance News) - Mkango Resources Ltd on Friday said it made strides in reducing its loss and expenses, attributing the improvement to strategic cost-cutting measures and progress in its recycling-focused operations.
The Malawi-focused producer of recycled rare earth magnets, alloys, and oxides, reported a reduction in expenses and losses for the nine months ending September 30.
For the period, Mkango's pretax loss narrowed 34% to USD2.1 million from USD3.2 million a year earlier, driven by a 37% decrease in total expenses to USD2.2 million from USD3.5 million.
For the third quarter alone, ending on September 30, Mkango reported a pretax loss of USD384,904, a reduction of 74% compared to USD1.5 million in the same period last year.
Quarterly expenses also dropped sharply by 60% to USD558,882 from USD1.4 million, reflecting a strategic cost-cutting initiative and a streamlined focus on its recycling operations.
Mkango said its joint venture, HyProMag USA, is aiming to generate its first revenues from rare earth recycling in the US by early 2027. Meanwhile, the company expects its Tyseley Energy Park facility in Birmingham to begin commercial sales of recycled rare earth products as early as April.
As of September 30, Mkango held USD2.0 million in cash, doubling from USD1.0 million at the start of the year, thanks to successful financing rounds and grant funding. However, the company acknowledged the need for additional funding to meet liabilities due in the next 12 months.
The company expressed confidence in its financial stability despite the need for additional funding, with the board stating: "Having given due consideration to the cash requirements of the company, the directors have a reasonable expectation that the company will have adequate resources to continue in operational existence for a period of at least twelve months from the date of approval of these financial statements."
Mkango shares were up 0.4% at 9.34 pence each on the AIM in London on Friday morning.
By Eva Castanedo, Alliance News reporter
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