(Alliance News) - Ncondezi Energy Ltd on Friday said its loss widened in 2018 due to a share-based payment charge, while warning that it will need further funding to get to the end of 2019.
The power development company posted a USD3.5 million pretax loss, widened from USD1.7 million the year before.
This was principally the result of a USD1.3 million share-based payment charge, with no such charge incurred the year before.
Other administrative expenses also played a part, rising to USD1.5 million from USD1.1 million.
As at Friday last week, Ncondezi had cash reserves of USD1.9 million, which it expects to fund the company through to the start of December. It is pursuing further funding and seeking a debt for equity swap on its current USD4.7 million loan, which matures at the end of November.
"Notwithstanding the loan, further funding will be required as detailed above to meet operating cash flows under current forecasts or in the event of accelerated project advancement. The directors are exploring a number of funding and working capital solutions beyond the 30 November 2019 maturity of the loan. The financial statements have been prepared on a going concern basis in anticipation of a positive outcome but it is important to highlight that there are no binding agreements in place and although the company has also been exploring options to raise additional funding and refinance or convert the loan; there can be no certainty that any of these initiatives will be successful," said Ncondezi,
"These factors indicate the existence of a material uncertainty which may cast significant doubt about the group's ability to continue as a going concern," the firm added.
Shares in Ncondezi were up 2.2% at 7.31 pence on Friday.
