LONDON (Alliance News) - Evocutis PLC Tuesday said that it is pleased with progress it has made at its two major investments despite "exceptionally challenging circumstances for natural resource companies", as it reported a narrowed pretax loss for its first half.
For the half year to end-January Evocutis reported a pretax loss of GBP35,000, narrowed from a pretax loss of GBP57,000 a year before, as a result of lower administrative costs. It did not report revenue in either period.
Evocutis has two key investments, a 10% stake in Brazil Tungsten Holdings Ltd and a 2% stake in Horse Hill Developments Ltd, which operates two licences in the northern Weald Basin.
The company said that Brazil Tungsten has advised that, despite a difficult tungsten price environment, it has continued to focus on developing its Bodo mine in the Currais Novos region of Rio Grande de Norte State, Brazil. It expects to be on track to reach its phase 1 target of 150 tonnes per day of run-of-mine ore from underground by June.
At Horse Hill flow testing operations were completed in March, and "far exceeded expectations", with a stable oil rate of 1,688 barrels per day achieved.
Evocutis raised GBP350,000 in February through a share placing, which it will use for general working capital and to seek further investment opportunities.
"In summary, during these tough times the board will vigorously pursue opportunistic acquisitions as funding becomes more challenging for many small companies. With cash at bank and no debt we are strongly placed to pick over the assets of those that fall by the wayside," Evocutis said in a statement.
Shares in Evocutis were down 4.0% at 0.0600 pence Tuesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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