24th Sep 2015 14:27
LONDON (Alliance News) - Stellar Resources PLC Thursday said its pretax loss narrowed in the first half of 2015 after it severely cut its administrative costs and said it is "confident" that its investments will be "potentially rewarding".
The mining investment company reported a GBP121,000 pretax loss in the first six months of 2015, narrowing from the GBP213,000 loss reported a year earlier as administrative costs were slashed to GBP80,000 from GBP213,000.
At the end of June, Stellar was debt free with a cash balance of GBP1.4 million.
The company's primary investments are a 49% stake in Gold Mines of Wales Ltd, which is exploring the Dolgellau Gold Belt. The company has recently secured a six-year option to give it plenty of time to explore the region.
Its other main investment is its 10% stake in Horse Hill Developments Ltd, which owns a 65% stake in the Horse Hill project in the Weald basin of the UK. The Horse Hill project is thought to have around 10.99 billion barrels of oil in place but the amount of oil that can be recovered is still unknown.
The companies involved, including many other London-listed entities, said they will now press ahead with a flow test on the Horse Hill-1 well, whilst also evaluating those deeper Jurassic tight oil plays to see if this can further increase the amount of oil in place.
"The board is confident that the investments made by the company are both encouraging and potentially rewarding. We will look to realise this potential over the future years in addition to continuing to review other investment opportunities," said Chairman Donald Strang.
Stellar shares were up 1.3% to 0.329 pence per share on Thursday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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