LONDON (Alliance News) - Spain and Portugal-focused mining company W Resources PLC on Monday recorded a substantial widening of its loss in the first half of the year, due largely to a loss on foreign exchange.
The copper, gold, and tungsten development company's pretax loss in the six months to June 30 was GBP2.0 million, far deeper than its GBP381,000 loss the year before.
The company made a GBP1.1 million loss on foreign exchange, which made up the bulk of expenses. This compares with no loss or gain on exchange the prior year. In addition, administrative expenses rose 72% to GBP639,000 from GBP371,000 and finance costs jumped to GBP279,000 from just GBP10,000.
W Resources, at present, is still in its exploration phase and is not revenue-producing.
In Spain, company completed USD35 million debt funding from BlackRock Financial Management Inc and its Iberian Resources Spain SL subsidiary was awarded a EUR5.3 million grant for the La Parrilla mine project.
Meanwhile, in Portugal the company completed its reverse circulation drill campaign at its Tarouca tungsten and tin exploration licence and São Martinho gold project.
"La Parrilla is funded and under full project development. The project is on schedule and on budget and tungsten and tin production and sales are set to commence at large scale production levels and at low cost in 2019. Achievement of this objective will transform W Resources," said company Chairman Michael Masterman.
Shares in W Resources were up 2.4% at 0.42 pence on Monday.
