Regency Mines Swings To Interim Profit On Disposal Of Horse Hill Stake

23rd Mar 2018 13:08

LONDON (Alliance News) - Regency Mines PLC on Friday swung to pretax profit in the first half of its financial year, and said it expects gains from investments in a US metallurgical coal project.

The exploration and mineral investing company said its pretax profit was GBP421,000 for the six months to the end of December, compared with GBP182,000 loss for the same period the year before, despite no revenue generated. In the first half of the 2016 financial year, Regency Mines delivered revenue of GBP42,000.

Regency Mines said the positive result came from GBP1.5 million investment gain, after the sale of 5.0% stake in oil exploration company Horse Hill Developments Ltd.

However, this was partly offset by impairment of Regency Mines' interest in a metallurgical coal joint venture in the US, which cost the company GBP822,000.

Administrative costs reduced in the period to GBP258,000 from GBP307,000 the prior year, while finance costs grew to GBP45,000 from GBP20,000.

Despite Horse Hill holdings disposal, the group said it continues to build up its presence in hydrocarbon energy sources, as it increased interest in Curzon Energy PLC to 8.9%.

The group said that despite provision against the value of the metallurgical coal assets, it still has strong expectations for the development of that business. Hence, it invested USD2.0 million in the joint venture with Legacy Hill Resources Ltd to develop metallurgical coal project.

Regency Mines Chairman And Chief Executive Officer Andrew Bell said: "We look forward to an exciting period in which, from a solid financial base, we start to reap the rewards of investments undertaken and decisions made."

Shares in Regency Mines were trading 4.60% lower at 0.48 pence per share on Friday.

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