(Alliance News) - Anglesey Mining PLC on Friday reported a widened first half loss on increased costs and said that it will need further funding for ongoing expenses and to maintain and develop the company's mineral properties.
The UK-based exploration company said its pretax loss for the six months to September 30 deepened to GBP156,600 from GBP137,117 loss in the same period last year. The company did not generate any revenue in either period.
The widened loss was attributed to increased administrative and finance costs. Administrative expenses totaled GBP71,493 versus GBP57,477, while finance costs jumped to GBP85,190 from GBP79,719.
The half-year saw QME Mining Technical Services carry out design, engineering and optimisation studies on the company's Parys Mountain zinc, copper lead mining project located on the island of Anglesey in Wales.
QME's earlier studies indicated the Parys Mountain project can be improved if the potential mineable tonnage can be increased by using a lower cut-off grade and generating a revised mine development plan. More recent studies suggest there is significant potential for the inclusion of inferred resources from other zones into an updated scoping study or feasibility study.
While Anglesey said it is encouraged by the progress being made and will work to keep corporate and operating costs low, it is expected that additional funding may be needed towards expenses as well as the maintenance and development of the group's mineral assets, which include the Grangesberg iron ore project in Sweden and a 12% interest in Labrador Iron Mines Holdings, which owns iron ore resources and facilities in the Schefferville area of Labrador and Quebec, Canada.
Looking ahead, Chair John Kearney said: "We continue to review the development opportunities for our iron ore projects, albeit with inherent complexities resulting from the fluctuating commodity price. We are also actively reviewing some other opportunities for Anglesey in base metal projects in favourable geopolitical environments and will advance these where possible."
Anglesey shares were trading flat at 1.50 pence per share on Friday in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Anglesey Mining (AYM)