19th Mar 2015 17:55
LONDON (Alliance News) - Weatherly International PLC Thursday reported a wider pretax loss for the first half of the financial year as its cost of sales surpassed revenue following on from the company's announcement in January that said its operations were currently "unsustainable", as its shares remain suspended whilst it tries to resolve its financing woes.
For the six months ended December 31, the company reported a much wider pretax loss of USD5.2 million from a USD2.6 million loss in the same period a year earlier after its cost of sales surpassed its revenue, leading to a wider operating loss than in 2013.
Revenue for the year increased to USD22.5 million from USD19.3 million. However, the miners cost of sales in the first half totalled USD22.9 million, surpassing revenue, compared to USD18.1 million a year earlier.
In January, Weatherly said its operations had become "unsustainable" in the current environment and reported a quarter-on-quarter fall in production after recovery rates and grades fell.
This led to an operating loss of USD408,000 in the period compared to a USD1.3 million operating profit a year earlier.
At the end of the period, it reported a cash balance of USD10.8 million, excluding a further USD3.7 million of cash held relating to draw downs under the Orion Mine Finance Facility.
Weatherly shares are currently suspended due to the company's "uncertain" finances which it is continuing to try and resolve.
"The company has suspended its shares until it is in a position to quantify the full financial effect of the above and can confirm it has sufficient financial resources to meet its short term needs and loan repayments," it said.
By Joshua Warner; [email protected]; @JoshAlliance
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