12th Sep 2013 09:25
LONDON (Alliance News) - Patagonia Gold PLC Thursday said it narrowed pretax losses in its first half as it lowered exploration costs and focused on its already owned mines.
The gold-and-silver exploration-and-production mining company with operations in the Patagonia region of Argentina said its pretax loss narrowed to USD8.8 million from USD12.4 million for the six months ended June 30.
The company, which is not currently booking revenues, said its exploration costs almost halved to USD5.4 million from USD10.1 million during the period as the company focused on developing the mines it already owns, beginning production at its Lomada site after the first half ended.
The drop in exploration costs offset an increase in administrative costs to USD6.9 million from USD3.5 million as the company paid for the purchase of new property and equipment for its mining operations.
Patagonia's flagship Lomada de Leiva project began producing gold during the company's second half and has already produced 5,413 ounces of gold by the end of July, with gross proceeds of USD8.0 million and realising an average gold price of USD1,478.9 per ounce.
The company has no long-term debt and continues to raise further equity as needed to carry out its exploration and development plans.
Patagonia shares were down 1.00 pence, or 7.3% to 12.75 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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