14th Apr 2015 09:55
LONDON (Alliance News) - Oracle Coalfields PLC Tuesday said it will focus on formalising agreements and contracts for its flagship coal project in Pakistan during 2015 after reporting a slightly narrowed pretax loss in 2014.
The coal miner reported a GBP709,470 pretax loss, slightly narrower than the GBP1.0 million loss reported in 2013 after costs fell and income rose.
Oracle does not currently generate any revenue, but recorded GBP491,000 from other operating income in 2014 from only GBP82,000 a year earlier, partially offset by finance income falling to GBP2.0 million from GBP3.0 million. Administrative expenses fell to GBP712,016 from GBP1.0 million.
At the end of 2014, Oracle reported a cash balance of GBP383,063, putting it in a weaker position than at the end of 2013 when it reported a balance of GBP538,789.
The company?s primary interest is the Thar Coalfield Block VI licence area located in the Sindh province in south-eastern Pakistan. The project is a 1.4 billion tonne resource with a 529 million tonne mineral resource and 113 million tonnes in proven reserves.
The company said work in 2015 will concentrate on formalising agreements and contracts to bring the project into full implementation.
In September, Oracle signed a engineering, procurement and construction framework agreement with SEPCO for the construction of a 600 megawatt power plant to be situated at the mine mouth and for the development of a 4.0 million tonne per year open pit mine to power the plant. Talks have been extended to December from March to allow the companies to develop the agreement, it said.
Once negotiations and agreements have been finalised, Oracle will be in a position to source funding for the project from certain Chinese banks and Sinosure, the Chinese export and credit insurance corporation.
Oracle said it is also continuing talks with K-Electric to negotiate a power purchase agreement with the company to purchase the entire 600 megawatts of power from the plant for a 30 year period.
"The company remains steadfast in its objective of developing one of the largest private sector integrated coal mine and power generation projects in Pakistan," said Chief executive Shahrukh Khan.
Oracle shares were down 0.8% to 1.31 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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