4th Jun 2015 07:26
LONDON (Alliance News) - Rose Petroleum PLC Thursday reported a wider pretax loss in the last financial year as revenue fell on the back of weaker metal prices, the closure of some mines and uneconomic grades.
The US focused oil, gas and mining company reported a pretax loss of GBP3.6 million in 2014, widening from a GBP2.9 million loss in 2013, as revenue tumbled to GBP1.9 million from GBP5.7 million. Its margin was also squeezed as cost of sales was level with revenue in 2014.
Rose said revenue was down primarily due to the closure of historic mines and "the inability of the group to sustain consistent economic grades from these mines" and lower metal prices.
Administrative expenses rose to GBP2.2 million from GBP1.3 million and operating and development expenses increased to GBP459,000 from GBP241,000. These were offset by impairments falling to GBP588,000 in 2014 from GBP2.9 million.
At the end of 2014, Rose had a cash balance of GBP5.4 million, up from the GBP1.2 million held at the end of 2013 after the company raised GBP10 million via various placings during the year.
Six further Mancos wells are currently being prepared for permitting to drill on the Uinta and Paradox Basins in the US, its primary focus. Subject to permitting ,Rose will drill the first well in late 2015.
Mining has also commenced on the Mina Charay gold and silver project in Mexico which will contribute positive revenues in 2015 as the mine moves into full production, it said.
Rose shares were down 1.2% to 0.420 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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