Alba Mineral Resources plc reported an increase in losses but remained “very bullish” while it continues to await permits for the Clogau-St David’s gold mine in Wales.
FINANCES
Final results for the year ended 30 November 2022 showed operating losses of £1,623,000 before impairments (2021: £1,067,000).
The figure reflected a full year of administrative expenses for investee company GreenRoc Mining plc.
Alba company’s operating loss remained at a similar level of £800,000 year on year.
The impairment charge for the year relates to the Greenlandic project Inglefield Land (£199,000) plus the write down of the company’s investment in oil and gas company Horse Hill Developments Ltd (HHDL) by £785,000.
Total operating losses were £2,607,000 (2021: £1m), with loss for the year of £2,605,000 (2021:£1.8m).
Alba used net cash in operating activities of £1,547,000 (2021: £486,000) and in investing activities of £2,437,000 (£2.6m).
At year end the company held cash and equivalents of £456,000 (2021: £4m).
Executive chairman George Frangeskides increased his holding to +48m ordinary shares in Alba with plans to invest further, demonstrating his “steadfast belief in the inherent value of the company’s assets and prospects”.
The company raised £500,000 before costs from a placing.
OUTLOOK
Alba was refused a water discharge permit in November 2021 and ordered to produce a full Habitat Regulations Assessment (HRA) of the entire mining project before receiving further permits.
“We hope that we are now entering the final straight of this process and that we will be able to get on with our work activities again in the near future,” added Mr Frangeskides.
“We continue to be very bullish about the prospects for our 100% owned Welsh gold assets.
“Although the ongoing hiatus in the planned in-mine work activities at Clogau has been frustrating, we believe that we are finally approaching a conclusion to the current ecological permitting process and that the HRA, once concluded, can provide a framework for a more streamlined and efficient process for future permitting applications.”