LONDON (Alliance News) - EMED Mining Public Ltd Friday said its pretax loss narrowed for the first nine months of the year, despite its loss widening and costs increasing in third quarter alone.
The company's pretax loss widened to EUR4.0 million in the third quarter ended September 30, compared to a EUR3.8 million loss in the comparable period a year earlier. The company does not currently generate any revenue, with the wider loss caused by higher maintenance costs and an increase in finance costs.
Finance costs totalled EUR1.2 million compared to EUR338,000 a year earlier, whilst care and maintenance costs rose to EUR1.3 million from EUR1.0 million. These were slightly offset by a reduction in administrative expenses, which totalled EUR1.4 million from EUR2.0 million a year earlier.
For the first nine months of the year, the company's pretax loss stood at EUR8.5 million, slightly narrower than the EUR8.8 million loss in the first three quarters of 2013.
At the end of September, the company had a cash balance of EUR13.1 million.
At the company's Rio Tinto copper project in Spain, it has completed 1,050 metres of drilling by the end of the third quarter, and said there are over 220 people, 2 drilling contractors, and 3 drill rigs working on the site to develop the project.
In addition, EMED has identified potential capital expenditure savings for phase one development of around USD50 million. The company said the throughput rate during phase one will be 5 million tonnes per year, set to increase to 15 million tonnes per year in phase two, it said in a statement.
EMED has also applied for the mining permit for the project, and the company expects to be awarded with it before the end of the year.
The company continues to review its options, which include the sale or joint venture of its interests in Slovakia, and is currently in discussions with interested parties, it said in a statement.
Its assets in Slovakia include the Detva and Stiavnica-Hodrusa licenses in the centre of the country, which are focused on gold.
"We have been extremely busy on the ground and continue to rapidly expand operations during this exciting phase of development. With over 220 people working onsite and drilling and refurbishment ongoing this is an incredibly exciting time at Proyecto Riotinto. We look forward to scaling up further in the coming months as we build on the great momentum achieved to date," said Chief Executive Isaac Querub.
EMED shares were down 1.8% to 7.00 pence per share on Friday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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