6th Sep 2018 13:52
LONDON (Alliance News) - Gold exploration & development company Panthera Resources PLC on Thursday recorded a significantly widened annual loss, as exploration and administrative expenses escalated.
Panthera shares plunged 20% to 2.00 pence on Thursday following the announcement.
The company's pretax loss in the year to March 31 was USD2.5 million, eight times the USD310,006 loss recorded in its prior financial year, after administrative expenses more than doubled to USD1.1 million from USD414,841.
Moreover, exploration costs were 11 times higher at USD608,836 versus USD53,580 and the company incurred a USD311,666 share option expense where none was recorded previously.
As exploration is ongoing, Panthera recorded no revenue.
The company's exploration efforts have been hindered in India, with the company's efforts to secure mineral rights to key Indian properties unsuccessful thus far.
Post year-end, the company's joint venture partner, Metal Mining India Pvt Ltd, had its prospecting licence rejected by the Rajasthan government.
Metal Mining India intends to appeal the decision, with a writ petition and associated stay application now filed with the High Court of Rajasthan.
"Despite the company's consistent efforts to achieve a positive result, it was not forthcoming, and the subsequent prospecting licence rejection means that exploration efforts remain on hold until the necessary licence and permits are secured," said Panthera Non-Executive Chairman Michael Higgins.
Nonetheless, Panthera has been encouraged by its West Africa portfolio, with all three of its West African properties upgraded
"The permitting process in India has suffered a temporary setback which, combined with muted capital market conditions for mineral exploration companies necessitates a more prudent follow-up of the exciting drill targets defined in West Africa than we might otherwise like. Nevertheless, with increasingly attractive exploration targets and ore grade intersections to follow up, the board is confident that 2019 provides an opportunity for great success," said Higgins.
"While the Indian permitting odyssey has entered a new phase, the board has reiterated a commitment to succeed in overcoming the hurdles that appear to frustrate the company at each turn," he added.
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