27th Nov 2024 12:22
(Alliance News) - Tectonic Gold PLC on Wednesday reported a narrowed loss for its financial year ended June 30, reflecting improved cost controls and a shift in strategy following asset transactions.
The mineral exploration company, which operates in Australia and South Africa, posted a full-year pretax loss of GBP234,445, halving from a GBP524,316 loss the previous year.
The loss from continuing operations also narrowed to GBP152,253 from GBP524,316.
Tectonic Gold reported no revenue for the year and, consistent with the prior period, declared no dividend.
During the year, Tectonic Gold completed two major transactions. It entered into a staged farm-out agreement for its Specimen Hill copper-gold project with White Energy Ltd, an ASX-listed company. The deal enables Tectonic to retain a "significant" economic interest through a royalty structure, while White Energy assumes operational control and future development costs. The transaction includes a potential USD2 million cash payment to Tectonic upon meeting project milestones.
Additionally, the company sold its interests in South African assets Whale Head Minerals Pty Ltd and Deep Blue Minerals Pty Ltd, to AIM-listed Kazera Global PLC. This deal provided Tectonic with a modest cash return and equity in Kazera, offering exposure to future project upside.
Tectonic said it now plans to focus on its Mt Cassidy gold-copper project in Queensland, Australia, while exploring other opportunities in critical minerals and small-scale Australian gold producers.
Chief Executive Officer Brett Boynton said: "The difficulty for any new junior resources companies to come to market in either Australia or on the London exchanges has created a host of opportunities for Tectonic. We are reviewing some very attractive small development and expansion stage gold assets in Australia. We have also cast the net wider to look at critical minerals in geologies where our technical expertise is relevant. 2024 has been a much quieter year on the operational side with the focus on corporate work."
Shares in Tectonic Gold traded flat at 0.15 pence each on Wednesday afternoon on the Aquis Stock Exchange.
By Eva Castanedo, Alliance News reporter
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