27th Aug 2015 09:37
LONDON (Alliance News) - Stratex International PLC Thursday reiterated that production from the Altintepe mine in Turkey will begin before the end of September and said the company continues to assess further M&A opportunities as it reported its first half results.
The gold and base metal exploration and development company operating in Turkey and Senegal, which does not currently generate any revenue, reported a GBP1.4 million pretax loss in the first six months of 2015, slightly narrower than the GBP1.4 million loss a year earlier.
However, Stratex said the two pretax loss figures are "not directly comparable" as the 2014 results included the East African operations, which were sold to the Thani-Stratex joint venture in October 2014. The 2015 results also include the company's acquisition of a 34% stake in GoldStone Resources which was not completed until October 2014.
Stratex said its operating loss for the half came in at GBP1.2 million from the USD1.3 million loss a year earlier, but the company said, on a like-for-like basis, its operating loss narrowed by 14%.
At the end of the half, Stratex reported a cash balance of USD2.5 million.
"Progress during the period has been predominantly driven by our operations in Turkey where construction has continued at our 45% owned Altintepe gold mine, where production is expected before the end of the third quarter, and at Muratdere where our partners have completed a feasibility study on the copper-gold porphyry project," said Chairman Christopher Hall.
Stratex said although Muratdere has "attractive economics", it is still assessing whether to contribute to the continuing development costs, sell its interest, or accept dilution to a royalty position.
"Our search for more advanced projects, which we could acquire and accelerate towards production, has continued. Despite engaging with several targets, we have yet to acquire the right asset at the right price," added Hall.
Stratex shares were down 2.8% to 2.09 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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