20th Sep 2013 08:27
LONDON (Alliance News) - Sovereign Mines Of Africa PLC Friday said its pretax loss widened almost four-fold in its first half as a one-off fair value cost hit company finances.
The mineral exploration company, with operations in West Africa, said its pretax loss widened to GBP697,158 for the six months ended June 30, from a GBP179,098 loss a year earlier.
At this point the company has not posted any revenues but its administrative expenses were down 19% to GBP146,816 from GBP181,288 during the period.
Sovereign's finances were hit by a one-off fair value loss on its assets totalling GBP552,200 which pushed the company deeper into losses.
The company also said the third drilling phase at its Mandiana Magana site has been completed and test results at the project found a 43 metre interval averaging 5.91 grams per tonne of gold.
In January, Sovereign raised working capital of GBP1.25 million through a placing and in June it raised a further GBP398,000 from the disposal of 2 million shares in Praetorian Resources Limited.
Sovereign shares were down 6.86% to 3.26 pence in early trading Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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