26th Sep 2013 12:43
LONDON (Alliance News) - Rare Earths Global Limited Thursday said it significantly narrowed its pretax losses on lower operating costs despite a drop in sales.
The Chinese mining services group, specialising in extracting and refining rare earth elements, said its pretax losses narrowed to CNY3.7 million from CNY27.7 million for the six months ended June 30.
The company said its sales fell to CNY247,573 from CNY52.9 million due to its Sanxie smelter plant ceasing production as Chinese regulation of the Rare Earths market meant it could not receive its production quota.
REG said that production at Sanxie remains on hold until late 2013 or early 2014.
REG also said that it made a share based payment of CNY23.1 million last year which improved this years balance sheet and managed to decrease its administrative expenses to CNY4.0 million from CNY12.2 million the previous year.
The company said the Sanxie site is fully compliant with new regulation and has filed all the relevant documentation with the authorities. Rare Earths Global expects that up to a third of China's 23 mines and 99 companies in China would fail to meet the extensive regulation.
By Tom McIvor; [email protected]; @TomMcIvor1
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