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(Alliance News) - Arc Minerals Ltd on Monday swung to loss for financial 2019 mainly due to absence of a large exceptional gains arising from acquisition of majority stake in Zamsort Ltd, a company owning copper exploration licences in Zambia.
The Africa focused exploration company increased its interest in Zamsort from 14% to 66% in the year ended March 31. The additional 52% was acquired with shares and Arc's aggregate cost of its 66% interest in Zamsort totaled GBP4.5 million.
For financial 2019, the company recorded a pretax loss of GBP6.3 million, compared with GBP2.1 million profit in the year ago period. The prior period included a GBP10.5 million gain arising from the Zamsort deal.
Operating loss, which excludes Zamsort transaction, for the year narrowed to GBP2.9 million from GBP8.1 million, with impairment charges reducing to GBP582,000 from GBP7.2 million.
Arc Minerals said it is currently engaged in talks to sell 100% stake in the Sturec gold project in Slovakia as well their entire 99% interest in the Casa gold project located in the Democratic Republic of Congo in order to focus on Zambian copper assets.
"The expressions of interest and subsequent discussions that we have had to date support our belief that the sale of these assets will generate significant value for Arc Minerals," said Arc Minerals Chair Nick von Schirnding.
Schirnding also said that Arc Minerals is well placed to benefit from increased copper demand due to fall in inventories.
Arc Minerals shares were down 2.6% at 2.77 pence each in London on Tuesday afternoon.
By Tapan Panchal; tapanpanchal@alliancenews.com
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