LONDON (Alliance News) - Orogen Gold PLC Monday said it managed to narrow its full year loss during 2015 by lowering costs, and said it plans to conserve cash moving forward due to the current uncertainty surrounding gold prices.
The gold explorer, which has assets in Armenia, Serbia and the US, said its pretax loss amounted to GBP890,000 in 2015, narrower than the GBP1.9 million loss reported the year before after the company booked less impairments and reduced costs.
Orogen only booked GBP534,000 worth of impairments in 2015 compared to the GBP1.3 million booked in 2014, whilst administrative expenses declined to GBP356,000 from GBP548,000.
The miner's focus in 2015 was on the Mutsk project in Armenia, where it found two shallow gold-bearing intervals, two gold-bearing zones and numerous potential extensions to the previously discovered gold zones. Orogen also completed a geological review which confirmed the project overlies a large hydrothermal system.
"With the uncertainty in the price of gold, we sought to conserve cash reserves as much as possible and to focus our expenditure on the promising Mutsk gold project in Armenia," said the company.
Cash at the end of 2015 stood at GBP921,000, boosted by the company's placing in the year which raised GBP450,000.
The other two projects that sit alongside Mutsk are the Devi Jovan project in Serbia and the Silverton project in Nevada in the US, where Orogen has recently acquired the option to earn an interest in by funding work on the asset.
Orogen shares were down 1.7% to 0.0258 pence per share on Monday,
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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