9th Mar 2015 10:18
LONDON (Alliance News) - Sula Iron & Gold PLC saw its shares rise Monday morning as it reported a narrowed loss for its last financial year and said it was making further operational progress on its projects in Sierra Leone.
The company reported a pretax loss of GBP1.4 million for the year to September 30, 2014, compared with a GBP2.0 million loss a year earlier, due to a drop in administrative expenses and as it booked GBP26,000 of revenue compared with nothing a year earlier.
It was able to capitalise GBP1.5 million of drilling costs on the first iron ore target at Ferensola as it was confident of being able to achieve a maiden resource estimate, whereas drilling in the previous year was expensed as incurred.
In 2015, the company wants to do further exploration on its gold and coltan exploration projects with the aim of progressing both to the drilling stage, to establish a joint venture partner for its gold project, progress talks with a potential off-taker for the coltan project, and identify a joint venture partner for its iron ore project.
"We are progressing our discussions with potential off-takers for our coltan, we are in early discussions in identifying a strategic partner for our gold, and the receipt of the JORC MRE on BIF1 has enabled discussions with a number of interested parties to develop," Sula Chief Executive Nick Warrell said.
Sula's maiden JORC-compliant Mineral Resource Estimate was declared at the Ferensola iron ore project in December.
Its shares were up 12.4% at 0.927 pence Monday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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