LONDON (Alliance News) - GCM Resources PLC Wednesday said it knows of no other reason for its recent 62% share price increase other than the possible finalisation of the Government of Bangladesh's Coal Policy.
The resource exploration and development company said that press speculation in Bangladesh Wednesday said that the Bangladeshi Government's decision is imminent.
In January, GCM reported that it narrowed its losses in the first-half of its financial year as it cut its administrative expenses by over half, and said it would now engage with the re-elected Bangladesh government to progress the approval process for its coal prospect in the country.
GCM's main project is the Phulbari coal project in Bangladhesh. It is awaiting approval from the country's government to proceed with the project.
In its statement its said its engagement with the local community was paying off, with support for the project growing.
"The Bangladesh national elections were held on the 5th January leading to a second term of office for the Awami League Government. The company looks forward to discussions on the project with the Bangladesh Government in the very near future," the company said in a statement at the time.
GCM Resources shares were up 62.4% to 26.80 pence Wednesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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GCM Resources (GCM)