1st Apr 2014 10:16
LONDON (Alliance News) - Touchstone Gold Ltd Tuesday said its pretax loss widened in 2013 as it a wrote down the value of assets including property and equipment, and it again warned that it faced defaulting on some payments if it can't get new funding.
The gold mining company, which is yet to produce any revenues, said its pretax loss widened to USD18.7 million from USD10.3 million the previous year. Its costs and expenses increased to USD19.0 million, from USD10.3 million, mainly due to a USD15.0 million impairment as the carrying amount of the company's property, plant and equipment fell significantly.
The company suspended all exploration activities during 2013 after being hit hard by the fall in the gold price and said in January that its concession contracts may have to be ceded back to the vendors and Touchstone may lose all or part of its interest in those concessions if it cannot find additional funding.
On Tuesday, the company said it is continuing to review a number of options in order to secure financing and reiterated that if it cannot gain funding, it will be unable to meet its scheduled payments to vendors on its concession contracts.
On the plus side, the company also said "other" income more than doubled to USD277,034, from USD109.884, due largely to a USD482,827 payment on changes in the fair value of its derivative liability, slightly offsetting the company's losses.
Touchstone Gold shares were down 16.4% to 0.460 pence, putting it in the top ten AIM fallers Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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