Xtract posts wider loss after spending more on exploration, development

(Sharecast News) - Xtract Resources reported a wider annual loss on Monday after increasing investment in exploration and project development during what it described as a transformational year, marked by its expansion into antimony mining in Morocco and continued progress across its Zambian copper assets.

The AIM-traded company posted a pre-tax loss of £1.9m for the year ended 31 December, widening from £0.4m a year earlier, while administrative and operating expenses increased to £2.19m from £1.38m.

Cash at year-end improved to £2.29m from £2.17m after the company raised £2.0m through an equity placing, although net assets eased to £17.72m from £18.37m.

Operationally, Xtract highlighted the acquisition of the historic Amghas and Ighoud antimony mines in Morocco, where exploration identified high-grade mineralisation of up to 15% to 40% antimony and development has advanced towards near-term production.

In Zambia, drilling extended high-grade copper-silver mineralisation at the Silverking project, while the company said it had decided after the year-end to relinquish its Chilibwe and Western Foreland licences to focus on higher-priority assets.

Chairman Colin Bird said the company's transition from exploration into mine development and production had been "transformational", adding that Xtract believed it had the potential to make "a significant impact on the antimony market".

At 1408 BST, shares in Xtract Resources were down 8.4% at 1.15p.

Reporting by Josh White for Sharecast.com.

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