(Alliance News) - Georgian Mining Corp on Thursday posted a narrowed loss for the first half of 2019 as administration expenses more than halved, but expressed its continuing frustration with the delay of its exploration permit in Georgia.
Shares in Georgian Mining were down 21% at 1.39 pence in London in morning trade.
The miner's pretax loss for the six months ended June 30 was GBP384,827, about halved from the GBP655,160 loss recorded a year before.
The bulk of this reduction was seen in administration expenses, which fell 51% to GBP407,796 from GBP837,374. The firm's revenue rose 31% to GBP83,145 from GBP63,413.
Non-Executive Chair Neil O'Brien said: "The continuing delay the company faces with the government in Georgia regarding the extension of the exploration permit is wholly unacceptable. The delay is a result of a political issue outside of the company's control, and as such requires a political solution. Political unrest in Georgia in June 2019 appears to have abated, and recent changes in the government in Georgia provide some basis for optimism that a solution may be on the horizon, but this continues to be unpredictable. As a consequence, the company is very constrained in what can be shared publicly, but we continue to explore all avenues for resolving the application and to engage with senior government officials and other influential parties to try to solicit an outcome."
O'Brien added: There would appear to be a stark contradiction between the treatment of the company in respect of our exploration permit extension, and government's wish to increase foreign direct investment and expand the resources sector."
By Anna Farley; annafarley@alliancenews.com
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