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(Alliance News) - Mkango Resources Ltd on Wednesday said its net loss narrowed in 2019 due to a fall in expenses.
Shares in the exploration and development firm closed 5.8% higher at 4.12 pence each in London.
For 2019, Mkango posted a net loss of USD3.0 million, a significant reduction from the USD7.2 million loss recorded in 2019. No revenue was generated as the company continued the exploration and evaluation of the Songwe Hill deposit in Malawi.
Expenses including administrative costs, research and development, share-based payments and mineral exploration expenditures totalled USD3.6 million, sharply lower from GBP6.9 million incurred in 2018.
Looking ahead, it said that it expects some of its work streams to be hurt as a result of the Covid-19 pandemic, adding that it now expects its feasibility study to be completed in the second half of 2021.
Mkango said: "Whilst the feasibility study is continuing with work underway in Australia, South Africa and the UK, the company believes it is inevitable that some work streams will be impacted, however the degree of impact is currently uncertain".
"Following a review of the various ongoing work streams, the company is now targeting completion of the feasibility study in the second half of 2021, in line with an anticipated more stable market environment and favourable backdrop to advance project development. We note, however, that extended periods of Covid-19 disruption may further impact this timing."
As at the end of 2019, Mkango had available cash of USD9.5 million
By Ife Taiwo; ifetaiwo@alliancenews.com
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