15th Nov 2013 11:39
LONDON (Alliance News) - Touchstone Gold Ltd Friday reported a smaller third-quarter net loss as exploration costs and consulting fees were sharply lower than a year ago, but its loss for the first nine months of the year more than doubled due to a USD13.6 million writedown and its exploration programme remains suspended.
The company, which isn't yet earning any revenues, reported a loss of USD499,350 for the three months to end-September, compared with a USD2.3 million loss a year earlier. However, for the first nine-months of the year, its loss was USD16.9 million, wider than the USD7.7 million loss it recorded in the year-earlier period due to the writedown of mineral interests related to its acquisition of Atlantis Gold Mines Corporation in the first half of the year.
Touchstone, which mines for gold in Colombia, has had a difficult year. It has been hit hard by the fall in the gold price which has meant that raising new funding has proved difficult. It has temporarily suspended its exploration programme and implemented "certain steps" to preserve cash.
The miner faced a slew of resignations towards the end of the first half of the year, as Chief Executive Officer David Wiley and two of the company's board of directors left.
It has USD165,936 in cash at the end of the period and USD100,000 in deposits.
Touchstone Gold shares were down 20% at 1.3 pence Friday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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