(Alliance News) - GCM Resources PLC on Monday reported a widened annual loss as the mining company saw its operating expenses rise.
Shares in GCM Resources closed down 9.3% in London on Monday at 12.70 pence each.
In the year ended June 30, GCM reported a pretax loss of GBP6.0 million compared to GBP5.4 million the year before.
GCM's operating expenses rose 16% to GBP5.2 million from GBP4.5 million. The company attributed the rise to additional share-based payment arising from joint ventures signed in the period.
The company did not generate any revenue in either period.
"GCM Resources is committed to a strategy of developing the Phulbari coal deposit as a captive, large-scale, open pit mining operation supporting 6,000 megawatts of highly energy efficient ultra-supercritical power generation, which is planned to be developed in three stages, over a ten year period, to complement the planned ramp-up in coal production to the nameplate 15 million tonnes per annum," the company said.
GCM said its progress remains in line with its strategy, describing the development proposal as "robust".
Executive Chair Datuk Michael Tang added: "We believe the actions taken over and beyond the reporting year provide the greatest chance to deliver the value-add our shareholders deserve and provide the government and people of Bangladesh with a long-term, large-scale, low-cost power solution.
"As we now push forward to formally present the project proposals to the government and seek to obtain the necessary approvals, our efforts will be greatly assisted by having appropriate consultants and lobbyists in both China and Bangladesh. I am pleased that we now have agreements with share based payments in place with both Dyani Corp Ltd, covering negotiations in China, and DG Infratech Pte Ltd, a Bangladeshi controlled company, working on the ground with us in Bangladesh."
By Paul McGowan; paulmcgowan@alliancenews.com
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GCM Resources (GCM)