(Alliance News) - Bacanora Lithium PLC on Monday reported a narrowed loss in the first half of its current financial year as it progresses the Sonora project in Mexico.
The lithium development and exploration company's pretax loss in the six months to the end of 2019 narrowed to USD5.0 million from USD11.1 million in the 12 months to June, as general & administrative expenses reduced to USD2.8 million from USD7.0 million.
Finance costs were also lower, at USD2.4 million compared to USD4.4 million the year before.
Bacanora has recently changed its financial year to align with the calendar year, with financial years previously ending June 30.
"During the period under review, Bacanora continued to make strong progress towards our goal of becoming a leading supplier of high-value lithium products to fast-growing industries," said Chief Executive Peter Secker.
In the half-year, Bacanora concluded an investment and offtake agreement with lithium metals producer Ganfeng Lithium Co for the Sonora lithium project in Mexico.
The company is now working towards securing the full funding package for Sonora in 2020.
Looking ahead, Bacanora said it remains in a "strong" position, as demand for lithium is forecast to triple by 2025.
Secker added: "We remain fully committed to our two high-quality lithium projects and look forward to all our shareholders and stakeholders reaping the rewards in the years to come as both projects in turn, generate significant returns."
Bacanora shares were trading 1.7% higher in London on Monday at 26.70 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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