26th Sep 2019 17:25
(Alliance News) - Power development company Ncondezi Energy Ltd said on Thursday its interim loss narrowed while it is mulling options in respect of an outstanding loan before it matures.
Ncondezi's pretax loss narrowed to USD1.3 million in the six months to June 30 from USD2.4 million a year ago, as administrative expenses nearly halved to USD878,000 from USD1.6 million.
As at September 23, the firm had cash reserves of USD1.5 million. Based upon projections, the group will be funded until the third quarter of 2020.
"The company is currently reviewing a potential investment in a GridX solar battery project, however there is currently nothing binding in place. Should the company elect to make an investment, it will explore debt options available to it to ensure cash reserves are prioritised for the immediate funding needs of the main project," said Ncondezi.
However, forecasts remain subject to a shareholder loan being extended or restructured. The outstanding balance of USD4.1 million matures on November 30.
"The company is currently evaluating options to either extend, restructure or refinance the outstanding loan before maturity and has initiated discussions with shareholder loan holders," the company said.
Shares in Ncondezi closed down 5.3% at 5.40 pence in London on Thursday.
By Lucy Heming; [email protected]
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