LONDON (Alliance News) - Nyota Minerals Ltd shares plummeted on Tuesday after releasing its results for the last financial year, which outlined a very difficult period which saw the company divest from a prospective gold project, withdraw from its Ethiopian licences, and invest in an Italian nickel project where a lot of work is still needed to be completed.
Nyota shares were down 26% to 0.0370 pence per share on Tuesday.
The mining exploration company reported a AUD3.2 million pretax loss in the financial year ended June 30, narrowing from the AUD3.8 million loss a year earlier as the company, which generates very little in revenue, squeezed its administrative costs and booked fewer impairments, partially offset by higher exploration costs.
Nyota focused on exploring the Brantham and Towchester exploration licenses in Ethiopia in the period after it sold its 25% stake in the Tulu Kapi gold project due to the downturn in the market. Tulu Kapi is being developed by fellow AIM-listed Kefi Minerals PLC.
However, that exploration work was in vain because the mining licence application, submitted in April 2014, was rejected by the government in January, and the board decided not to appeal the decision. Nyota then withdrew financial support for Brantham and Towchester at the end of April.
Afterward, Nyota acquired 70% of the Ivrea nickel project in the Piemonte region of Italy. The highest order exploration target is the Alpe di Laghetto survey block followed by the two other anomalous areas of Fej and Gula. The aim is to drill one of these targets during the next twelve months, it said.
At the end of the financial year, the company had a cash balance of only AUD106,280.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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