19th Sep 2013 10:29
LONDON (Alliance News) - Paragon Diamonds Ltd. Thursday said pretax losses narrowed in its first half as it lowered administrative expenses and developed towards production of its Lamphane mine in Lesotho.
The African-focused diamond development company said its pretax profits narrowed to GBP538,000 from GBP873,000 for the six months ended June 30.
Paragon is not yet generating revenue, as it develops its exploration assets towards production. The carried value of those assets rose to GBP43.7 million from GBP41.3 million during the period.
The company lodged a mining license application for its Lamphane site at the Lesotho Ministry of Mines in February and believes it will be granted the license imminently. In the company's most recent resource upgrade at the site it recovered a total of 301.44 carats and expects to increase the yearly production rate to 500,000 tonnes per year from 200,000 tonnes, upon achieving the license.
The company managed to significantly lower its administrative expenses to GBP388,000 from GBP852,000 as it cut costs at its head office.
Paragon also completed a fundraising during the period of GBP1.55 million by issuing 31 million new shares.
Paragon Diamonds shares were off 5.98% to 5.50 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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