Corcel plc reported widening losses at the end of year in which it expanded its metals assets in Papua New Guinea (PNG).
FINANCES
Final audited results for the year ended 30 June 2022 show losses of £2.1 million (2021: 1.2m).
Administrative costs rose to £1.26m (2021: 1.0m) reflecting increased insurance costs, professional services costs, share based payments (non-cash) and payroll costs.
Finance costs over the year increased to £224,000 due to increased interest and finance fees (2021: £65,000).
At 30 June 2022, the group had cash and cash equivalents of £0.025m and £1.4m of borrowings.
OPERATIONS
Post period, the company signed a memorandum of understanding for a joint venture for the Mambare (41%) and Wowo Gap nickel-cobalt (100%) projects in PNG.
Additionally, the company applied for the Star Mountains gold-copper tenement in PNG and secured an option on the Mt. Weld rare earth project in Western Australia.
OUTLOOK
The company is in the process of strategically winding down its gas peaker and battery storage portfolio in the UK, which would also reduce its debt and free further capital.
The report said that the directors anticipate raising additional funding and reducing or forgoing salaries if required, but consider they will have access to adequate resources.
FOUNDATIONS
“During these challenging times in global and domestic markets, the board is very cognisant that the continued support of our key stakeholders, including lenders, shareholders and the new cornerstone investor, remains critical,” added executive chairman James Parsons and chief executive Scott Kaintz
“We are amongst the first movers in this space in the micro-cap sector and we believe that our shareholders will, in due course, see significant rewards from the hard miles we have covered building the foundations to support our present strategic positioning, which now includes both an intended Singapore listed joint venture as well as investments from large industrial and strategic partners.