(Alliance News) - Origo Partners PLC on Wednesday reported a widened interim loss as liquidation plans continue.
Shares in Origo were trading up 24% at 0.15 pence each in London on Wednesday.
The Isle of Man-based investment firm's pretax loss widened to USD654,000 in the six months ended June 30 from USD447,000 a year prior.
Net asset value sank by 28% to USD1.69 million on June 30 from USD2.34 million at the end of calendar 2020. The decline is a result of operating expenses and a write down of Origo's investment in Celadon Mining, a coal miner focused on northern China, the company said.
"Our objectives continue to be selling the company's remaining assets, returning capital to shareholders and putting the company into liquidation," the company said in June.
On Wednesday, the company noted some difficulties returning capital from its investments, Celadon Mining Ltd and Moly World Ltd.
Origo said it has not received payments from Celadon's proposed asset sale, which it previously expected to arrive between now and March 2022.
In 2020, Celadon agreed to sell its assets for payments amounting to CNY280 million, or around USD40 million. To date, the coal company has received only a small portion of this prospective sale income.
"Celadons's controlling shareholder, who has been maintaining Celadon's solvency with loans, nonetheless remains hopeful that the transaction will complete. We continue to monitor Celadon but given the buyer's repeated failures to complete as promised, the risks that the deal will not complete, and the uncertainty of alternative options, Origo has again decided to write this asset down by half," said Chair John Chapman.
The company also noted plans to sell its 20% stake in Mongolia-focused molybdenum miner Moly World. The stake cost USD10 million in 2011, the company said. However, since then global molybdenum prices collapsed and Moly World's progress stalled.
Molybdenum prices have now recovered to about where they were in 2011, Origo noted.
"Origo expects to put its Molyworld shares and any other remaining assets up for auction before the end of the year. We will provide additional details in due course," Chapman added.
By Scarlett Butler; scarlettbutler@alliancenews.com
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