(Alliance News) - Alba Mineral Resources PLC on Tuesday reported a widened loss for its recently ended financial year, due to impairments on intangible assets involving the Limerick zinc-lead base metals project.
Shares in Alba Minerals closed 24% lower at 0.042 pence on Tuesday in London.
For the year ended November 30, the mineral exploration and development firm said its pretax loss was GBP1.3 million, widened from GBP75,106 the year before.
This was due to the lack of the revaluation on investment the prior year, which made a gain of GBP825,533 at the time.
For the year, there was a one-off impairment charge of GBP539,554, which relates to an unsuccessful flow testing of the Kimmeridge formation in the Brockham oil field, and a drilling campaign at the Limerick project which did not intersect mineralised zones.
Looking ahead, the ongoing Covid-19 pandemic has cast doubts on Alba Mineral's ability to conduct several activities in the future, including a trenching programme on the Clogau gold project in Wales, and a maiden drilling campaign for the Amitsoq graphite project in Greenland.
"The past 12 months have been challenging ones for Alba. The markets have been capricious, and lately of course we have seen some of the biggest UK stock market falls in decades, the reasons for which I will return to later. Putting that aside, we did not see the bounce in our share price that we would have expected from the significant advances we were able to make across our projects during the year," said Executive Chair George Frangeskides.
"The bottom line, however, is that we retain a solid belief in our core projects at Alba and we will employ the technical skill and endeavour of our highly experienced team of mining professionals to keep pushing our projects forward until such time as our successes are properly reflected in our share price," Frangeskides added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Alba Mineral Resources (ALBA)