LONDON (Alliance News) - Metminco Ltd Wednesday said its pretax loss narrowed in the first half of 2015 as it continues to try to source funding to develop its Los Calatos project in Chile.
The mining exploration and development company, which generates very little in revenue, reported a AUD1.9 million pretax loss in the first six months of 2015, narrowing from the AUD3.3 million loss a year earlier after the company slashed costs.
Corporate costs dropped to AUD880,223 from AUD1.5 million, and the company only booked a USD270,194 foreign exchange loss compared to a AUD453,835 loss a year earlier. Metminco also booked less exploration write-offs, totalling AUD114,483 compared to AUD903,961.
Metminco is advancing exploration projects located in Chile and Peru, mainly focused on copper, but with bolt-on exposure to molybdenum, gold and zinc. Currently, it is solely focused on the Los Calatos project in Chile and the evaluation of acquisition opportunities with potential for a near term cash flow.
The company is in discussions with a number of potential partners for the Los Calatos project as well as pursuing other funding alternatives, so it can develop the project.
Back in July, Metminco received an updated mineral resource estimate for the project, saying it will produce over 765,000 tonnes of copper and generate USD2.78 billion in earnings over 17 years from the mine. Los Calatos has a net present value of USD285 million with a payback period of 5.3 years.
Metminco shares were up 4.9% to 0.215 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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