BCN.L Share News (BCN)

LONDON (Alliance News) - Bacanora Lithium PLC on Wednesday reported a wider interim loss as it continued to work on its German and Mexican lithium projects.

Bacanora's pretax loss for the six months to December widened to USD4.3 million, from USD3.3 million the same period a year prior.

It has no revenue, as none of its projects are yet in the production stage.

Bacanora has two main projects: Sonora in Mexico and Zinnwald in Germany. The focus at the former is getting development funding, and the second on finishing a feasibility study.

During the period, Bacanora secured USD240 million for Sonora to build an initial 17,500 tonne per year operation. However, it failed to complete a USD100 million equity raise, and requires a further USD220 million to complete funding for stage one.

At Zinnwald, Bacanora is on track for the feasibility study to be completed in the second quarter of 2019, and it also received a resource estimate of 124,974 tonnes in September.

Looking ahead, the company said long-term forecasts for lithium demand remain "highly positive", though it expects the lithium price to be more bumpy. The last period was challenging in terms of the lithium price, it continued, driven by lesser demand from China and higher output in Australia.

"For a junior resources company to be able to successfully run multiple work streams concurrently is testament to the quality and depth of Bacanora's management and operational teams on the ground," said Chair Mark Hohnen.

Shares were down 0.2% on Wednesday at a price of 21.70 pence each.