LONDON (Alliance News) - Prairie Mining Ltd on Friday reported a narrowed loss in its half-year results due to positive fair value movements.
For the six months to the end of 2017, Prairie reported a pretax loss of USD5.30 million, narrowed slightly from the USD5.34 million loss the prior year, as revenue rose to USD441,023 from USD403,179, consisting of income from interest and from gas and property leasing. Prairie said it also benefited from fair value movements on the conversion right of the first CD Capital convertible loan note.
The group secured an investment agreement with its strategic partner CD Capital which now has a right to invest a further USD68.0 million in any future fund raise conducted by Prairie.
The company's cash stood at USD15.1 million at the end of the period, leaving it in a "strong" financial position to continue with its planned development activities at Debiensko and Jan Karski coal projects, both in Poland.
To date, the group has not commenced production. During the year the company undertook further work on the projects, completing a pre-feasibility study and beginning a focused in-fill drill program.
The company said the loss was driven by growth in exploration and evaluation expenses to USD4.0 million from USD2.6 million in 2016. Business development expenses also rose to USD512,267 from USD484,478 the year before.
Prairie shares were down 2.4% at 43.45 pence per share on Friday
