11th Jun 2014 11:00
LONDON (Alliance News) - StratMin Global Resources PLC Wednesday said its pretax loss widened significantly in 2013, as administrative expenses increased, while the company achieved first production from its Lohorano plant.
The Madagascar-focused graphite exploration and production company said its pretax loss widened to GBP2.5 million from GBP363,000 the previous year.
The company said it achieved first production of graphite from its Lohorano plant in September 2013, with revenues of GBP46,000 being included in the financial data.
However, as the company developed its operations in Madagascar during 2013, its administrative expenses jumped to GBP2.1 million from GBP363,000.
In May, StratMin said its Lohorano plant produced 107 tonnes of flake graphite in April, after starting commercial production on April 9, exceeding management expectations which was set at 100 tonnes.
The company said it is now moving towards cash flow breakeven, which is expected to be achieved at a production volume of 300 to 350 tonnes per month. In order to achieve this, the company needs new machinery, which is expected to arrive on site in July and be installed during August.
StratMin shares were down 16% to 7.65 pence, putting them in the top ten AIM ALL-Share fallers on Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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