(Alliance News) - Copper and gold explorer Bezant Resources PLC on Monday said it narrowed its first half loss but reported "challenging" conditions in the copper market.
In the six months to June 30, the company posted a loss of GBP387,000, narrowed year-on-year from GBP483,000, helped by the non-repeat of GBP199,000 in impairment costs incurred in the first half of 2018.
The firm operates in the UK, Argentina and the Philippines, but discontinued its activities in Colombia in April 2018. It also entered into a "binding memorandum agreement" with KPZ International Ltd which granted Bezant a conditional option to acquire a 50% stake in a copper mining licence in Zambia.
In May, Bezant received further exploration and drilling permits from local authorities in the Jujuy region of Argentina for its Eureka project. The company said the northern part of the project is now "drill ready".
The company did however decide not to pursue drilling at Eureka and the Mankayan project in the Philippines, citing "current market conditions".
Chief Executive Laurence Read said: "Over the first six months of 2019, Bezant has sought to optimise and maintain the good standing of its portfolio assets whilst assessing and pursuing pathways to deliver value for shareholders with minimum dilution. The current market conditions and copper markets are challenging and our decision not to pursue drilling campaigns on either Mankayan or Eureka has been borne out."
Bezant said that it conducted a new mining and economic study at Mankayan instead, to assist the company "in securing a potential funding or joint-venture partnership".
Executive Chair Colin Bird added: "There can be no doubt that the year to date has been tough for junior resource companies, and while gold soars the copper price is unfortunately suppressed. In the form of Mankayan and Eureka we have a promising portfolio of real copper-gold assets and a prospective addition via Buffalo.
"We continue to identify and assess the best routes forward for value creation in an inefficient market facing huge supply shortfalls and restricted exploration activity."
Shares in Bezant were 2.2% lower at 0.14 pence each in London on Monday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Bezant Res (BZT)