LONDON (Alliance News) - Cadence Minerals PLC said Friday it swung to a loss from a profit in the first half of the year due to a drop in the market price of its investments in Bacanora Lithium PLC.
The lithium and rare earth mineral investor reported a pretax loss of GBP4.6 million for the six months to June 30, swinging heavily from a GBP895,000 profit the year before.
This was the result of a GBP3.7 million loss relating to a loss in value of its 8.3% equity stake in Bacanora, compared to a GBP2.3 million profit the year before.
Cadence did reduce its administrative expenses, however, to GBP788,000 from GBP1.1 million a year before.
Cadence's mining investments are not yet revenue producing.
"The future remains very exciting for the company. We will continue to review our investments in our investee companies, with regular meetings with management. Importantly we will continue to examine the market perception of lithium and if required ensure we limit our exposure to further downside in our equity positions," Cadence said.
Shares in Cadence were down 6.9% at 0.1560 pence on Friday. Bacanora Lithium shares were up 1.5% at 34.0p on the day Friday, though they are down 68% in the year to date.
