30th May 2018 14:52
LONDON (Alliance News) - Xtract Resources PLC on Wednesday said its loss narrowed in 2017 as it cut expenses and first revenue from gold sales.
The metals and minerals producer said its pretax loss for 2017 narrowed in 2017 to GBP1.3 million from GBP3.9 million the year before, as it reported revenue of GBP166,000 from gold sales. The prior year the company did not generate any revenue.
Xtract Resources said its finance costs reduced to GBP581,000 from GBP2.0 million while administrative expenses dropped to GBP1.1 million from GBP1.7 million.
The company said during the year it decided to appoint a number of contractors to operate various areas within its Manica gold mining site in Mozambique. As a result, since November last year, Manica has been generating cash flows to cover Xtract's overheads.
Looking ahead, Xtract said it is reviewing a number of contractor proposals to work on the project, as it is convinced results will remain cash positive.
The company is also considering hard rock mining opportunities and expects to conclude an arrangement during the second half of 2018 and thereafter move into project development.
"The outlook for our sector is strong especially for those companies who have operations or are close to operation," said Executive Chairman Colin Bird.
"We continue to look for opportunities which might further favourably position the company within the market and give the potential for an increase in shareholder value," Bird added.
Shares in Xtract were trading 8.3% lower on Wednesday at 1.58 pence each.
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