(Alliance News) - Orosur Mining Inc on Tuesday said its loss narrowed in the first half of its financial year due to a reduction in corporate & administrative expenses and an increase in other income.
The South American-focused gold exploration and development firm said its pretax loss for continuing operations in the six months ended November 30 was USD270,000, narrowed considerably from a USD935,000 loss the year before.
This was a consequence of a 15% reduction in corporate & administrative expenses to USD710,000 from USD833,000 combined with USD501,000 of "other income" recorded for the first half of financial 2019 with no such income the year prior. The source of this income was not specified.
Including discontinued operations, Orosur's total comprehensive income for the six months came to USD131,000, swinging from a USD9.0 million loss the year before. This resulted from a swing to income of USD670,000 from discontinuing operations from a USD7.3 million loss the prior year.
In November 2019, Newmont Colombia made a USD690,000 cash payment in order to maintain its phase 1 earn-in rights to Orosur's Anza project in Colombia. As at November 20, Orosur's cash balance stood at USD809,000, having been USD512,000 on May 31.
In terms of outlook, Orosur said its board "adopted an aggressive strategic plan to restructure its business, and recapitalise and transform the company" in the year ended May 2018.
"The company's main objectives were advancing the Anza project: the company's flagship, high grade gold exploration asset in Colombia; finding a fair solution in Uruguay for all stakeholders; and reducing its activities in Chile. This strategy remains unchanged," Orosur added.
Shares in Orosur were up 2.9% at 3.19 pence in London on Tuesday at midday.
By Anna Farley; annafarley@alliancenews.com
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Orosur Mining (OMI)