LONDON (Alliance News) - BMR Group PLC on Thursday said its pretax loss narrowed in its most recent financial year, as administrative expenses more than halved, and it said it continues to consider opportunities to expand the business.
The company, formerly known as BMR Mining, said it generated no revenue in the year ended June 30, in line with the prior year. However, the group's pretax loss narrowed to GBP1.1 million from GBP1.6 million a year earlier thanks to administrative expenses declining to GBP1.1 million from GBP2.6 million.
No reason was given for the change in administrative expenses.
During the year, BMR said it undertook a series of fundraising activities, with GBP750,000 raised in October 2015, a further GBP414,524 in January 2016, GBP395,200 in April 2016 and, subsequent to the year-end, GBP620,000 in October 2016.
The net proceeds of the raises have been applied principally in the construction of BMR's lead and zinc plant in Kabwe, Zambia, after its decision last year to build its own plant rather than follow its original plan to lease land and equipment from a subsidiary of Glencore PLC.
BMR said its principal focus continues to be on the Kabwe plant, though it said it also is addressing legacy issues, which previously resulted in write-downs and provisions, and also noted the indicative offer it made for Metal Tiger PLC in November. The terms of the offer were rejected by the independent directors of Metal Tiger as "fundamentally undervaluing that company", and BMR withdrew the offer in November.
BMR said it currently is considering opportunities to expand the business for increasing shareholder value, pointing to its recent decision to pay USD1.0 million to exercise its option agreement with Bushbuck Resources Ltd to buy the Star Zinc licence, also located in Zambia.
Shares in BMR were up 0.7% at 6.80 pence on Thursday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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