LONDON (Alliance News) - Papua Mining PLC Friday said its pretax loss widened in 2013 as higher administrative expenses due to significant exploration development at the company's assets hit the company's finances.
Papua has around 2,600 kilometres, made up of 13 exploration licenses for copper and gold in Papua New Guinea, 12 of which are on the island of New Britain. So far it has three potential sites, the Flying Fox, Junction and Tripela drill targets.
The company, which is yet to produce any revenues, said its pretax loss widened to USD2.1 million from USD1.8 million the previous year.
Papua Mining said it increased administrative expenses in order to complete the first phase of drilling at its New Britain project, completing a range of exploration activities helping to prove up its attractive targets.
Earlier in 2014, the company found high grade gold values of up to 35.5 grams per tonne over a wide area and copper values of up to 9%, at its EL 2051 licence. It is now continuing to develop the area along with its other targets.
The company had cash reserves of USD3.6 million at the end of 2013 and since then has raised further funds of USD4.2 million to help develop operations in Papua New Guinea.
The last six months have seen more than a 30% fall in the share price at Papua Mining, which it attributes to its stage of development and current market conditions. It said on Friday that it expects an improved market value of the business in 2014 and 2015 given the positive future prospects for the firm's exploration operations
Papua Mining shares were up 1.7% to 22.89 pence on Friday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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