29th Mar 2019 10:41
LONDON (Alliance News) - Regency Mines PLC on Friday said it swung to a loss in the first half of its financial year as operational expenses ramped up.
For the six months to the end of 2018, the exploration & development company posted pretax loss of GBP1.7 million compared to a GBP421,297 pretax profit in the comparative period a year ago.
Exploration expenses amounted to GBP73,529 versus nothing a year ago, while administrative costs rose to GBP266,873 from GBP257,515.
Furthermore, the company incurred a GBP1.3 million loss from its share in associates and joint ventures.
"Operationally the six-month period proved largely disappointing with the MET joint venture failing to produce the levels of coal originally anticipated, with one highwall miner idled due largely to working capital and bonding deficiencies," the company's board said.
The added: "Production has however trended upwards since the beginning of 2019, and the operator believes the operations have now been stabilized with the emphasis returning to increasing both internally produced tonnage as well as third party sales, alongside booting margins of each ton sold onward."
Regency Mines shares were trading 11% lower at 0.08 pence each.
Related Shares:
RGM.L