LONDON (Alliance News) - Orogen Gold PLC said Wednesday its pretax loss for the full-year widened after it was hit by an impairment charge on the value of its Deli Jovan asset.
Orogen reported a GBP4.18 million pretax loss for the year, up from a GBP651,000 loss last year, including a GBP3.7 million impairment charge - a result of a review performed on the carrying value of the exploration and evaluation assets related to the Deli Jovan Gold Project.
The company recorded no revenue for the full-year, compared to GBP7,000 last year.
Orogen raised GBP650,000 through a placing of around 216.7 million shares in October, undertaken to accelerate drill testing at its Mutsk gold project in Armenia. Earlier this month the company said it planned to commence geophysical surveys at the Mutsk gold project during April, which will seek to identify hidden mineralisation and extensions to recently discovered shallow gold zones.
In a statement for the year to December 31, 2013, the company said it had a difficult trading year not helped by a 28% fall in gold prices, "Against this backdrop it has become increasingly important for junior explorers to focus their spending and to concentrate on executing efficient work programmes to recognise near term value for shareholders," it said.
The firm said it remains excited about its prospects after it began 2014 in a stronger financial position, boosted by its share placing, and will continue to progress with the Deli Jovan project in Serbia and its primary exploration focus for the year, the Mutsk asset in Armenia.
Shares in Orogen plummeted in morning trading, making the stock the third biggest decliner on the AIM All-Share, trading 16.38% lower at 0.1547 pence per share.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
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