LONDON (Alliance News) - Polyhalite mining company Sirius Minerals PLC on Thursday said its loss narrowed in the first half of the year due to operating cost and finance expense reductions.
For the six months to June 30 the company recorded a GBP96.3 million pretax loss, substantially narrowing the GBP151.3 million loss recorded the prior year.
This occurred via a slight reduction in operating costs to GBP10.8 million from GBP14.7 million, as well as a decrease in net finance expense to GBP85.5 million from GBP136.6 million.
At present, the mining company is still in its exploratory stage and does not produce revenue.
Post period end, the company received USD250 million from the first stage of its royalty financing agreement with Hancock British Holdings Ltd for the development of its polyhalite Woodsmith mine in North Yorkshire.
Procurement for Woodsmith is now substantially complete and the company is working to achieve full financing for the project. Funding requirements for stage two have increased to between USD3.4 billion and USD3.6 billion, at least USD400 million above previous estimates.
"Construction activities at our sites continue at pace and significant milestones have been achieved in the first half of the year, such as breaking ground at Wilton. This, combined with excellent progress to our procurement process, has ensured the project remains on track to deliver first polyhalite production on time in 2021," said Chief Executive Chris Fraser.
Shares in Sirius were up 2.2% at 29.90 pence on Thursday.