LONDON (Alliance News) - Metminco Ltd Thursday said its pretax loss widened significantly in its full year as impairments hit company finances.
The exploration and development copper-mining company, with operations in Peru and Chile, posted a pretax loss of AUD36.1 million in 2013, growing from a AUD11.9 million loss in 2012, as revenues fell 74% to AUD89,019 from AUD336,988.
The company said its revenues fell as the company restructured its operations in June 2013, focusing on its two advanced projects, Los Calatos in Peru and Mollacas in Chile.
However, the majority of the company's losses came from a one-off exploration and evaluation expenditure impairment of AUD31.9 million as the company's restructuring meant it postponed drilling programmes at its Vallecillo and Loica projects in Chile and discontinued work at other projects.
Metminco added that, based on minimum spend to maintain operations, its current cash reserves of roughly AUD7.8 million are sufficient for the company to fund its activities well into 2015 but said that negotiations with a number of parties in order to secure more funding for the development of the Los Calatos and Mollacas projects are ongoing.
No dividends were paid or declared during the year and the directors did not recommend paying a final dividend.
Metminco shares were flat at 1.65 pence in morning trading Thursday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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