10th Sep 2013 08:05
LONDON (Alliance News) - Sable Mining PLC Tuesday said its pretax losses doubled in its full year as weak commodity prices reduced the value of its assets.
The exploration-and-development mining company with operations in Africa said its pretax loss widened to USD87.6 million from USD43.0 million for the full year ended March 31.
The company, which has no revenue stream as yet, posted a USD71.2 million impairment charge as operations connected to the company downgraded their opportunities due to the commodity price decrease. The company lost USD54.3 million alone on its 63.5% interest in Delta Mining Consolidated Ltd., which it wrote down as the seaborne thermal coal price halved to USD60 per tonne from USD120 per tonne.
The company said it managed to cut operating costs by 23% to USD14.7 million from USD19.0 million as the company minimised its costs to focus on its Nimba project in south-east Guinea which it believes has a high level of potential.
"We are confident that we can develop this project into a world-class, low cost mine. With this in mind, we are targeting obtaining mining and export-licences before the end of the year, ahead of expediting production," Chief Executive Andrew Groves said in a statement regarding the Nimba project.
Sable Mining shares were flat at 5.70 pence in early trading Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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