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(Alliance News) - Cadence Minerals PLC on Friday said its loss widened significantly in the first half of 2020 after recording a loss on available-for-sale assets, versus a profit on this a year before.
The minerals sector-focused investment company reported a GBP1.3 million pretax loss for the six months ended June 30, far wider than the previous year's GBP285,000 loss.
This was the result of a swing to a GBP444,000 unrealised loss on available-for-sale assets from a GBP1.1 million profit the prior year.
Cadence said: "The effects of the Covid-19 pandemic have been deep and fundamental. The pandemic has driven huge changes in the way we work and live the long-term effects of which are hard to predict with any great degree of accuracy. The reaction by governments around the world has for the large part involved economic stimuli with central banks cutting interests and the launch of huge quantitative easing schemes."
The company highlighted in particular stimulus packages in China that have benefited its investment portfolio. It highlighted that blast furnaces in China were operating at 92% of capacity, exceeding the 80% to 85% rates considered normal.
"Currently, indicators of construction activity look strong and a pipeline of orders had already been building before the pandemic struck. In its aftermath, construction has been given an extra push by the Chinese government's stimulus package," said Cadence.
As announced Friday last week, Cadence raised GBP1.3 million of new funds from investors for general working capital and to give more flexibility on loan repayment.
The stock was up 1.7% on Friday in London at 12.46 pence.
By Anna Farley; annafarley@alliancenews.com
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