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(Alliance News) - Xtract Resources PLC on Friday reported a narrowed loss in the first half as the company's gold sales doubled on the rising price of the precious metal.
In the six months to June 30, the gold and copper explorer and miner recorded a pretax loss of GBP320,000, narrowed from GBP408,000 seen the year before.
The company's revenue from gold sales doubled, however, rising to GBP807,000 from GBP460,000 the year before.
Administrative & operating expenses grew 15% to GBP948,000 from GBP825,000 the year before.
"The period under review has been extremely progressive with hard rock profit sharing collaboration agreement being secured with Mutapa Mining and Processing LDA," said Executive Chair Colin Bird.
"Our partners in this operation, have advised that certain key items of equipment have been ordered and deposits paid, whilst letters of intent have been originated for other major items of equipment. This agreement allows for a net profit interest share of 23%, provided the gold price remains above USD1,250 per ounce. The profit share decreases should the gold price fall below USD1,250 per ounce, and 20% net profit interest at a gold price of USD1,100 per ounce which remains the floor percentage interest," Bird continued.
Xtratc was established an exploration presence in Zambia, on the "very important" Matrix and Eureka projects.
"These projects are considered to be iron oxide copper gold mineralisation style and our initial work suggest that both projects have potential for significant discovery and small-scale copper ore mining, since both projects report directly to surface," added Bird.
Bird finished: "Operations continue to be modest but cash generative and, in every month, operational cash flow exceeded cost. The higher gold price and increased profit share resulted in overall earnings to the company being higher than the same period of last year and indeed the second half of the prior year."
Shares in Xtract Resources were 4.4% lower in London on Friday afternoon at 1.10 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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