LONDON (Alliance News) - Landore Resources Ltd Tuesday reported a widened pretax loss in 2014 due to an impairment charge applied to a loan note receivable from Lamaune Iron Inc, but said its operating expenses are in line with expectations as it looks to raise further equity to carry out development plans.
The mining exploration company reported a pretax loss in 2014 of GBP5.7 million, more than double the GBP2.4 million loss made in 2013, of which GBP3.4 million relates to an impairment charge applied to a loan note receivable from Lamaune Iron Inc.
It said that although the loan note is not repayable until April 2019, the company decided that due to a severe downturn in the global iron ore market it was prudent to make a full provision at this stage.
Assuming there is a medium- to long-term recovery in the iron ore market, the company anticipates that the note will be fully recoverable, it said.
Other than this, Landore said its operating and administrative expenses are in line with expectations and it intends to continue raising further equity to carry out its development plans.
Shares in Landore were untraded Tuesday morning, last trading at 1.50 pence.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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Landore (LND)