5th Jun 2015 08:28
LONDON (Alliance News) - Xtract Resources PLC Friday reported a loss for 2014 but Chief Executive Jan Nelson thinks the gold and copper explorer and developer has turned a corner.
Xtract made a GBP2.9 million loss before and after tax in 2014, compared with GBP232,000 in the prior year, as expenses from administration, operating and projects more than offset revenue.
"Significant progress has been made to take the Chepica mine from a start-up operation to a mine that will produce at steady state and generate a profit after capital expenditure," Nelson said of the gold and copper project in Chile.
The company made a loss in 2014 due to the cost of starting up a new mining operation, according to Nelson, who said it has now turned the corner and looks forward to reporting a profit in the future.
The CEO detailed how funds raised since the end of 2014 will help the company.
"This will now enable us to: grow the mining operations at Chepica; explore the remaining 70% of the exploration tenement around the mine; create mining flexibility and as a result consistent production delivery; and acquire additional projects to mitigate single asset risk to the company and to grow our revenue base," Nelson said.
Xtract shares were down 2.9% at 0.408 pence on Friday morning.
By Samuel Agini; [email protected]; @samuelagini
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