29th Aug 2019 10:22
(Alliance News) - Shefa Gems Ltd on Thursday said its loss widened in the first half of the year due to financial expenses associated with share allocations.
The Israel-focused multi-gemstone mining company posted a NIS2.6 million - around USD740,000 - comprehensive loss attributed to shareholders for the six months ended June 30. This is significantly wider than the NIS959,000 loss reported for the same period of 2018.
This was largely the result of NIS1.6 million of financial expenses incurred during the period, versus NIS67,0000 the year before.
The expenses came "mainly due to share allocations in the first half of the year and registration of financing expenses due to revaluation of the options for the shares allotted". During the year, Shefa conducted a 10-for-1 share split of its London Stock Exchange listed shares.
On a more positive note, sales revenue was NIS182,000 versus none the year before. Plus, general and administrative expenses fell to NIS1.5 million from NIS1.8 million.
Chief Executive Avi Taub said: "The first half of the year been very successful for Shefa Gems as we have accomplished many of our goals. These include completing the [technical economic evaluation] report, receiving official recognition on a new mineral in nature named Carmeltazite, discovered by Shefa Gems, and found in its gemstone, the Carmel Sapphire, discovery of the first naturally occurring vanadium metal hydride, receiving an independent valuation of our precious stones, and concluding the bulk sampling in Kishon Mid-Reach Zone 2.
"These achievements have put us in a strong position to advance with our target milestones for the rest of the year and beyond. In particular, we are focused on securing a mining license for Kishon Mid-Reach Zone 1 which will enable us to commence trial mining during 2020 and consequently begin producing revenue. Alongside our exploration activities we plan to develop our 'Mine to Market' strategy which entails creating unique pieces of jewellery with Shefa Gems' precious and rare gemstones which will be marketed worldwide. We are busy developing additional marketing channels which underscores the unique assemblage of precious stones in the land of Israel."
The company's exploration permit for the Kishon River and Kishon Mid Reach Zones 2 and 3 was renewed in July, and its prospecting licence over the Kishon Mid-Reach Zone 1 project was renewed for another 12 months.
Shares in Shefa were untraded at 4.25 pence in London on Thursday morning.
Related Shares:
Shefa Gems