30th Sep 2015 13:31
LONDON (Alliance News) - Strategic Minerals PLC reported a narrowed pretax loss for the first half of 2015 in what it called a "transformational period", as it opted to change direction, acquiring the Tatu coal mine project in New Zealand.
For the half year to end-June the company reported a pretax loss of USD320,000, narrowed from a pretax loss of USD2.8 million a year before, as a fall in revenue to USD488,000 from USD5.7 million was offset by lower administrative expenses, cost of sales, and amortisation charges not recurring.
The company said its improved performance reflected the cessation of loss making export activities at the Cobre mine in New Mexico and a reduction in overheads. The company has brought in house nearly all of its activities at Cobre.
Elsewhere, it raised GBP1 million in June to support work at Tatu.
"This momentum has been carried forward into the second half of the year with the commencement of the extraction of the bulk sample for the Tatu mine, approval from the New Zealand government to the change of control in the Tatu mining licence, continued development of the feasibility study of the Tatu mine covering the sales, costs of production and funding alternatives available, release of the Australian exploration tenements, on-going negotiations with buyers and transport companies to ensure domestic sales at the Cobre mine and the continued development of the potential project at Wanbao, Jilin province, China," said Managing Director John Peters in a statement.
Shares in Strategic Minerals were up 6.0% at 0.265 pence Wednesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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