LONDON (Alliance News) - West African Minerals Corp on Tuesday reported a narrowed pretax loss for its first half as a result of cost-cutting measures, along with the relinquishment of its licences in Sierra Leone, as it instead focused on its Sanaga project in Cameroon.
The company highlighted the significant pressure on the iron ore sector, and the wider mining sector, alongside a fall in the prices of key commodities. This has put "substantial financial stress" on companies in the junior iron ore production space, the company said.
As a result of these conditions West African Minerals cut its expenditure to a "bare minimum".
It completed its withdrawal from Sierra Leone, selling its entire interest in its subsidiary Ferrous Africa Ltd in August, and following this sale it has no further interests in Sierra Leone or further financial liabilities in relation to the Sierra Leone licences.
For the half year to end-September, the company reported a pretax loss of GBP408,675, narrowed from a pretax loss of GBP670,296 a year before, mostly as a result of lower administrative expenses, particularly in relation to directors fees, and salaries and wages.
West African Minerals said that, until market fundamentals improve, it will continue to "weather the storm", and position itself for the eventual recovery.
"We thus continue to focus significant effort on how best to utilize our existing assets, notably utilizing the Sanaga deposit as a low cost feed source for a regional steel development opportunity and to the review and evaluate new business opportunities for advanced exploration or producing assets in mineral commodities other than iron ore. We will continue to preserve cash and only spend funds on compelling value generation opportunities," the company said in a statement.
Shares in West African Minerals were down 1.2% at 2.10 pence Tuesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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