LONDON (Alliance News) - Tri-Star Resources PLC on Wednesday said that its loss widened in 2017, as it continues to invest in its 40% owned Omani production facility.
The metal processing and technology company said its pretax loss in 2017 was GBP6.0 million compared to the GBP3.6 million loss reported a year earlier. The company did not generate any revenue in either financial periods.
This came after the GBP3.6 million charge on conversion of the convertible secured loan notes.
The company said it continued with its cost reduction programme, resulting in drop in finance expenses to GBP1.4 million from GBP2.1 million the year before. Administrative costs did, however, rise to GBP869,000 from GBP763,000.
During the year, Tri-Star, said it made substantial efforts to improve its financial position. The company's debt reduced to GBP2.4 million from GBP11.4 million the prior year.
At the same time, it continued to invest heavily in an antimony and gold project in Sohar, Oman. In 2017, Tri-Star said it spent about GBP6.6 million on this project development.
"We are pleased with the progress of the project in Oman which has seen significant construction development over the course of 2017. Financially, we have achieved a healthy reduction in our debt levels while still providing ongoing financial support to the project," said Chief Executive Karen O'Mahony.
"We remain optimistic alongside our joint venture partners in the project and look forward to the production of first metal from the project in 2018," O'Mahony added.
Shares in Tri-Star were trading 6.9% lower at 0.03 pence per share on Wednesday.