3rd Feb 2014 11:06
LONDON (Alliance News) - Paragon Resources PLC Monday reported that it swung to a profit in the first half of its financial year as it booked a gain on the redemption of its Convertible Redeemable Preference Shares.
The company, which has switched from being a miner to being an agricultural investment company, reported a profit of USD2.4 million from the six months to end-November compared with a loss of USD5.2 million a year earlier as it booked a USD2.9 million gain on the convertible shares.
It bought a 40% stake in agricultural consultancy Greenstar Resources Ltd during the period, and said it is confident it wll move forward on a "significant investment project" in the "relatively near future".
"Greenstar is already proving its value to the company. It is currently in discussions concerning three separate consulting contracts with a combined gross value of up to USD1.5 million for technical reviews and feasibility studies. In addition it is in discussion with a West African oil palm plantation group regarding a management contract," Paragon said in its statement.
Paragon Resources shares last traded at 0.245 pence a share.
By Steve McGrath; [email protected]; @SteveMcGrath1
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