LONDON (Alliance News) - Bellzone Mining PLC Monday said it continues to seek funding to develop the Kalia project in Guinea, noting that its pretax loss widened significantly in 2013 as it was hit by a major impairment charge.
The iron ore, nickel and copper mining exploration and development company, with operations in the Republic of Guinea, said its pretax loss widened to USD156.5 million in 2013 from USD54.2 million in 2012.
The company, which is yet to produce any revenues, said it was hit by a massive USD92.2 million impairment charge as expectations for productive resources at its investment in Forecariah Holdings Pte Ltd were reduced significantly.
Bellzone also said its share of the net loss on its investment in Forecariah also led to a separate charge of USD28.2 million during the period.
However, the company did manage to offset the losses somewhat by reducing its operating losses, through cuts to its administrative expenses and exploration expenses.
Bellzone said its cash at June 13 was USD1.5 million, which represents enough cash to fund activities until August. The company is currently in talks over further funding and said that as long as it can receive full funding during 2014, it is confident that it can export iron ore in 2016.
The company is currently developing its flagship Kalia project which has a JORC reserve of 7 million tonnes of iron ore in 58% fines per year production at a total capital cost of USD865 million.
"We remain confident in the quality and potential of Kalia as a key resource globally, and will continue to build on the progress made to date," Chief Executive Glenn Baldwin said in a statement.
Bellzone shares were down 8.2% to 2.52 pence on Monday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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