Chesterfield Resources plc reported that its cash position trebled last year while pre-tax losses rose for its copper-gold-zinc-silver assets in Cyprus.
In its annual report and financial statement for the year ended 31 December 2020, the group reported cash of £2,438,856 (2019: £748,596) with pre-tax losses of £871,261 (£536,121).
In June 2020, the group added £630,000 from a placement to its reserves and in November Polymetal International took a 23% strategic stake in the company by investing £2.1m, with Chesterfield then raising an additional £400,000.
OPERATIONS
Chesterfield quickly wound down operations as the pandemic took hold and the majority of technical and corporate were outsourced.
It also also cancelled its office lease in central London and mothballed operations in Cyprus resulting in a reduction in overheads. Staff worked from home and the company said had no plans to re-open costly offices.
By June 2020, the company had restarted percussion drilling and conducted an AMT geophysics survey, and in September began a fully-funded diamond drill programme.
OUTLOOK
Executive chairman Martin French said that, in view of the potential for growth in the copper market, the company had decided to grow through acquisition.
“The company is now armed with an excellent technical team, experienced corporate financiers and financial fire power.
“The company has set itself an ambitious target to add a second major copper project to our business by the end of the summer, and a third by the end of the year.”