(Alliance News) - Regency Mines PLC on Friday reported a widened loss in its recently ended financial year, which the company regarded as "difficult and disappointing".
The battery metals and energy storage provider also announced on Thursday it will buy-out the remaining shareholders in its UK energy storage business, Allied Energy Services business.
Shares in Regency Mines - which is headquartered in London - were 13% lower at 0.033 pence on Friday.
Collectively, these shareholders hold a 20% interest in Allied Energy, while Regency Mines holds an 80% stake.
For the sale of the remaining 20%, the minority shareholders will be issued 2.5 million shares in the company, following the 1 for 100 share consolidation, which is expected to take place on Tuesday next week.
For the year to the end of June, Regency Mines reported a pretax loss of GBP2.6 million, widened from GBP1.5 million the year before, mainly due to a one-off gain of GBP1.5 million from a disposal in the 2018 financial year, more than offsetting higher impairment charges.
Also affecting the performance of Regency Mines was a written-off investment in joint venture firm Mining Equity Trust LLC, which was unable to continue coal production in Virginia, US, due to running short of funds.
There was also the write-off of the company's investment in White Car Ltd, which entered voluntary liquidation in June, and funding constraints limiting progress in the Dempster vanadium project in the Yukon, Canada.
Looking ahead, Regency Mines said it expects to end the calendar year of 2019 with firmer foundations, following a proposed fundraising, debt restructuring, share consolidation and change in board.
These proposed initiatives are subject to shareholder approval at a general meeting on Monday next week.
In terms of segments, Regency Mines will concentrate on its nickel and vanadium interests, as well as UK energy storage, while holding metallurgical coal and natural gas as non-core for future realisation.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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