LONDON (Alliance News) - Ncondezi Energy Ltd Tuesday said it narrowed its losses in the full-year, but said it is seeking funds to continue with the development of its power plant located in the Tete Province of Mozambique.
The thermal-coal producer, with operations in Mozambique, posted pretax losses of USD7.0 million for 2013, compared with a USD8.6 million loss a year earlier. Most of the company's loss were attributable to administration costs, it said.
The company said it has sufficient funds to complete a number of projects, which are targeted for later this year, however, it is in talks with a number of parties about raising further funds to continue with the development programme for its Ncondezi Project.
The company said that if a transaction with a potential co-developer is concluded as currently targeted in 2014, it will have sufficient funds to continue with a full development programme for the Ncondezi Project.
"Whilst progress is being made on a number of potential transactions that would provide additional financing, at present there are no binding agreements in place," it said.
Ncondezi said in the event that further funding is not secured, the group will implement its cost reduction strategy to ensure that it has sufficient funds to continue its activities on a reduced basis through to the end of the first half 2015.
Ncondezi shares were quoted down 3.1% at 7.03 pence Tuesday afternoon.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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