(Alliance News) - Cadence Minerals PLC on Friday said its loss narrowed in 2019 on gains from available-for-sale assets.
In addition, the company said Macarthur Minerals Ltd has announced the completion of an agreement with Arrow Minerals Ltd for the grant of rights to apply for tenements, which will support the development of infrastructure associated with a proposed magnetite processing circuit at Lake Giles iron project.
Cadence holds about 3% interest in Macarthur, which is an Australian mining exploration company.
Pursuant to the agreement, originally entered into in December 2019, Arrow will permit Macarthur to apply for and obtain a general purpose lease and a miscellaneous licence over a site
The terms upon which Arrow agreed to permit Macarthur's application included a cash payment of AUD250,000, about GBP138,891 - paid in December 2019 - and a share payment comprising the issue of Macarthur shares to Arrow to the value of AUD250,000.
"The completion of the agreement with Arrow has secured the rights necessary to enable the design and location of critical infrastructure associated with the magnetite processing plant which will be finalised as part of the feasibility study for the Lake Giles iron project," said Chief Executive Kiran Morzaria.
The company, which invests in the development of lithium and iron ore deposits, reported positive income of GBP333,000 for 2019 compared with GBP9.3 million in negative income the year prior, as it booked an unrealised profit of GBP420,000 on available-for-sale assets versus a GBP7.4 million loss the year before. Its realised loss on available-for-sale assets was GBP97,000, narrowed from GBP2.0 million in 2018.
Cadence Minerals reported narrowed pretax loss to GBP2.3 million for 2019 compared to GBP11.8 million loss a year earlier.
During 2019, the company said it has continued to support portfolio companies, whilst at the same time making progress on the Amapa iron ore project in Brazil.
Looking forward, Cadence Minerals said it hopes that the next few years will see significant gains, as projects progress to operation and revenue, and previously identified opportunities realise higher valuations.
"The recent economic contraction has been severe and turbulent. However our investments have always been based on long-term assumptions and not the idiosyncrasies of the market," said Non-Executive Chair Andrew Suckling.
Cadence Minerals shares were trading flat in London on Friday afternoon at 8.30 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Cadence Mineral (KDNC)