9th May 2014 11:03
LONDON (Alliance News) - Savannah Resources PLC Friday said its pretax loss widened in 2013 despite largely flat expenses, as impairment charges hit the company.
The minerals exploration and development company, which is yet to post any revenues, said its pretax loss widened to GBP2.0 million from GBP884,322 the previous year.
The company said its administrative expenses were largely flat at GBP905,576 rather than GBP897,085 but it was hit by a GBP1.4 million impairment charge against the value of its Karan and Diatissan licences in Mali.
During the period, the company significantly restructured its asset portfolio, acquiring interests in projects in Mozambique and Oman, and completing the strategic sale of a portfolio of gold assets in Mali to AIM-quoted Alecto Minerals PLC in October 2013 and March 2014.
The company is now focused on delineating a potential maiden resource at its Jangamo heavy mineral sands project in Mozambique and starting a scoping study in the second half of the year to prove the potential of the site.
In April, the company said it received positive results from ground magnetic surveys at Jangamo and announced that further testwork at the site had defined high-grade zones of up to 5% heavy mineral sands including ilmenite, rutile and zircon.
Savannah Resources shares were down 3.9% to 4.68 pence Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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