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(Alliance News) - Oriole Resources PLC on Wednesday reported it swung to a loss in the first half of 2021 after a rise in administrative expenses, as the company restarted exploration at its key West Africa projects.
It swung to a pretax loss of GBP871,000 in the six months ended June 30 from a profit of GBP167,000 a year prior.
The gold exploration company with projects in Cameroon and Senegal, West Africa, said production increased in the half-year as the company progressed on from the cost-saving measures implemented to weather the Covid-19 pandemic. As a result, administrative expenses increased to GBP520,000 from GBP420,000.
Chair John McGloin cited "the return to full time salaries for the team after voluntary wage reductions" and "a restart of exploration activities as borders reopened and travel became possible" as administrative cost drivers.
As Oriole is still developing mines and has none yet in full production, it has made no revenue in either half-year. However, in the first half of 2020, it had booked a gain of GBP730,000 from currency movements, compared to a similar GBP440,000 loss in the recent half, mostly due to its Senala project in Senegal, which is denominated in euro.
In the recent six months, Oriole started drilling at its Bibemi gold project in northern Cameroon where over half of the initial prospecting holes showed gold mineralisation. In central Cameroon, it began regional mapping and stream sediment sampling in its freshly granted 3,592 kilometre licence.
"The associated expenditure has seen us meet our spend commitment to earn a 90% interest in Bibemi, the nearby Wapouze licence, and three of the newly acquired licences within the Central Licence Package, where results from an initial set of stream sediment samples have already demonstrated significant gold anomalism," said Chief Executive Tim Livesey.
In Senegal, Oriole's IAMGOLD project completed 1,183 metres of diamond drilling and 7,965 metres of reverse circulation drilling between March and July, before the summer wet season kicked in.
"Our focus is on progressing exploration in a timely manner on the highest ranked targets in our portfolio," added Livesey.
"With a strong cash position and the drill rig already on site, we are well placed to kick off the next phase of more detailed infill drilling at Bibemi that will begin as soon as the rains allow, hopefully before the end of Q3."
The company declared no interim dividend, in line with last year.
Shares in Oriole were flat at 0.50 pence in London on Wednesday.
By Josie O'Brien; josieobrien@alliancenews.com
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