(Sharecast News) - Greatland Gold announced a significant increase in cash holdings in its half-year results on Monday, although its losses widened.
The AIM-traded precious and base metals explorer and developer said its cash balance at period end on 31 December stood at £59.8m, up from £10.4m on 30 June.
It also reported an operating loss of £3.5m for the first half, widening from £2.9m year-on-year.
The board said the increase in operating losses was mainly due to the firm's investment in the development of Havieron, which ran up £12.2m during the period.
However, exploration expenditure for the period was reported at £2.7m, including the Juri joint venture costs that were currently fully funded by Newcrest Mining for £1m.
That marked a decrease from the £3.1m spent on exploration in the first six months of the 2022 financial year.
The company's total debt was reported at £43.5m as of 31 December, widening slightly from £43.1m on 30 June.
"Greatland has continued to execute on its growth strategy to build a world-class mining company," said managing director Shaun Day.
"During the half year, Greatland favourably resolved the Havieron option process, raised equity capital, secured debt commitments and added high quality talent to its board and management team.
"The Havieron gold-copper project in Western Australia has continued to advance with the Mineral Resource having grown to over 6.5 million gold equivalent ounces."
Day said the advancement of the underground achieved record advance rates, with more than 1,800 metres of development complete."
"Together with the recent strategic investment by Wyloo and debt commitments, Greatland is now in a strong financial position as we progress towards production and cash flow from Havieron."
At 1448 GMT, shares in Greatland Gold were down 2.73% at 7.49p.
Reporting by Josh White for Sharecast.com.
Greatland Gold (GGP)