12th Apr 2016 09:15
LONDON (Alliance News) - Gemstone producer Richland Resources Ltd on Tuesday said its pretax loss widened in 2015 amid falling revenue but higher costs.
Richland said its pretax loss for the year to the end of December was USD2.2 million, compared to USD1.4 million a year earlier. Revenue declined to USD704,000 from USD995,000, but the company's cost of sales and its operating expenses both increased, exacerbating the effect on the profit line.
Richland said it produced 900,000 carats of sapphire over the year from the processing of 74,000 tonnes of alluvial gravels. In 2016, Richland said it will continue work on infrastructure improvements and modifications to its mining operations to enable a ramp-up to 800,000 carats per quarter by the second half of the year.
In addition, the company will continue to seek to optimise its operations, including its sales and marketing operations and the restructuring of its online sales business.
Richland shares were down 14% to 2.25 pence Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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