16th Sep 2013 14:45
LONDON (Alliance News) - Premier African Minerals Limited Monday said its pretax losses doubled in its first half as administrative expenses relating to the growth of the company hit finances.
The multi-commodity natural resource company with mineral projects located in Africa said its pretax loss widened to USD1.2 million from USD493,109 for the six months ended June 30.
As it is in its exploratory phase, the company does not generate any revenue. The most significant expense increase was in administrative costs which rose to USD1.2 million from USD468,909, including a share-based payment charge of USD288,714 for options the company issued on admission to AIM and also the investment of USD587,000 in the company's exploration projects.
The company was hit by a foreign exchange loss of USD125,431, compared with USD25,307 in the previous year.
Shortly after the end of the half-year period, the company invested in 120 million new shares in AgriMinco, operating in Togo and Mali, or 42% of the company, and also published a resource study of its RHA Tungsten Project in Zimbabwe, which indicated a capital expenditure of USD13.5 million and cashflow of USD118 million.
The company said it has been in touch with potential off-take partners at the RHA Tungsten project and targets production by late 2014.
"I particularly look forward to seeing the company transition from exploration to exploitation. I believe we are in a fortunate position in that our leading project is concerned with Tungsten, currently a favoured and desirable commodity," Chief Executive George Roach said in a statement.
Premier African Minerals shares were up 50% to 1.58 pence putting it top of the AIM gainers Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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