23rd May 2016 09:02
LONDON (Alliance News) - Strategic Minerals PLC said Monday it is "actively examining" a number of potential opportunities, as it reported a narrowed pretax loss for 2015 in what it called a "challenging year".
The company reported a pretax loss of USD880,000 for 2015, narrowed from a pretax loss of USD6.1 million in 2014, on revenue of USD1.3 million, down from USD6.1 million, mostly as a result of lower amortisation and impairments, and costs related to raw materials and consumables.
Strategic Minerals said it had made "tough decisions" in 2015 due to turbulent market conditions. Conditions related to its Tatu project in New Zealand deteriorated, and the company opted to cease its involvement in the project to safeguard its funds for other projects "more likely to produce better results."
It also pulled out of talks for the Wanbao Coal Mine in China due to difficulties in attracting funding.
Strategic Minerals did, however, conduct due diligence on the rights to acquire a 50% interest in a venture from Rarus Ltd in Australia focused on nickel sulphide, rare earths and gold exploration.
The company said it is confident it is in a stronger position moving into 2016 as it has lower overheads, and a cash flow stream from its Cobre mine in New Mexico.
"2015 was a challenging year where tough decisions had to be made in light of turbulent market conditions, but also a transformational one in which the company took a stake in an exciting new project and adopted a new investment strategy," said Managing Director John Peters in a statement.
"The company continues to maintain tight controls on its overheads and the group is actively examining a number of potential opportunities and we look forward to securing additional projects during the year," Peters added.
Shares in Strategic Minerals were down 8.6% at 0.320 pence Monday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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