(Alliance News) - Miners Tri-Star Resources PLC on Monday swung to first half profit helped by a larger fair value gain on an asset and administrative expenses more than halving.
In the six months to June 30, the company made pretax profit of GBP422,000, compared with a GBP1.2 million loss in the first half of 2018. Administrative expenses fell by 51% to GBP328,000 from GBP668,000 with finance costs falling to GBP85,000 from GBP306,000.
Also helping the swing to profit was a GBP1.7 million gain in the "movement in the fair value of financial asset" compared with a GBP427,000 gain in the same period last year.
The company's principal activity is its investment in an antimony and gold production facility in Oman which is being developed by Strategic & Precious Metals Processing LLC, a company which Tri-Star has a 40% stake in.
In July, the company reported that the Oman facility produced its first antimony metal, at a grade of 99.11%, close to the level of 99.65% needed for commercial sale.
In August, Tri-Star reported that the first dore ingots at the project were produced, with a gold concentration in excess of 2%, the minimum commercial grade.
Looking ahead, Tri-Star is targetting annual production of 50,000 ounces of gold and 20,000 tonnes in combined antimony metal and antimony trioxide when the facility reaches full capacity.
Non-Executive Chair Adrian Collins said: "The market outlook for both gold and antimony remain positive, despite the currently depressed price of antimony. With the optimisation of the Strategic & Precious Minerals Metals project continuing, progress on supply and offtake agreements and financing, we are confident that our investment will generate significant future value for shareholders."
Shares in Tri-Star were 2.6% lower at 36.51 pence each in London on Monday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
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