GCM Resources Share News (GCM)

Mining firm GCM Resources swung back into profit in the year to the end of June despite its principal asset in Bangladesh remaining undeveloped.The firm posted a pre tax profit of £2,25m, compared to a loss of £4.2m in the 2010. Diluted earnings per share came in at 4.2p.GCM said it had disposed of its holding in Aura Energy for a profit of £0.5m, as well as selling its interest in joint venture projects with Aura in Western Africa for £1.2m in cash.The group also received a cash dividend from Polo Resources during the period of £2.2m.The firm tried to reassure investors that its principle asset - an undeveloped coal deposit in the Phulbari region of Bangladesh - could soon get the go-ahead for mining.Development has been delayed since 2005 because of concerns about the environmental and social impact of the project."There now appears to be a widespread consensus amongst the country's politicians and government officials that large scale coal mining should go ahead," said chief executive Steve Bywater."The pursuit of approval has been a slow and, at times, frustrating process. Despite the passage of time, we believe that the Project approval will ultimately be forthcoming," he said."For Bangladesh to continue to develop there needs to be a substantial increase in its electricity generating capacity," Bywater added."As the country's largest proven coal resource and the only domestic coal deposit that has been subject to meaningful evaluation, Phulbari has a unique contribution to make to this process."