Oriole Resources plc reduces losses by more than 80% and raised £2.37 million through its portfolio of assets in Africa and Turkey.
The company said that the significant reduction was partly driven by an unrealised foreign exchange gain of £317,000, compared with a £445,000 exchange loss in 2019.
The remaining sum of £578,000 was the result of further reductions in costs and increases in the profitability of the company’s Turkish consultancy business.
In its financial results for the year to 31 December, the exploration and investment company reported an operating loss of £0.34m compared with £1.41m in 2019 – a reduction of 81%.
The group’s loss after tax for the year was £320,000 (2019: loss of £1,660k).
Administration expenses fell by 35% to £1,018,000 (2019: £1,556,000) from a mixture of cost-saving measures due to the pandemic.
UK administration expenses decreased by 17% to £0.87 million.
Salaries and professional fees were reduced and accrued salaries from 2019 were, as planned, relinquished by the directors in exchange for a share option scheme, effectively amounting to a direct investment of four months of salary by each member of the board.
In Turkey, the consultancy business team established in 2019 showed net profits of £162,000 and were used to settle outstanding historic employment liabilities for that team.
The continued reduction in net cost was bolstered by £317,000 of foreign exchange gains arising on the Senala asset in Senegal (denominated in Euros).
Further research and development tax credits totalling £165,000 were received during the year. As a consequence, the group loss after tax was reduced by 81% to £320,000.
The group ended the year with a cash balance of £1,751k, an increase in the year of £1,588k.
A fundraise in October 2020 brought in £1,869,000 of additional funding and the group also sold two Turkish royalties bringing in $80,000 cash and a further $470,000.
The company also sold its holding in Tembo Corporation Inc for £172,000.
OPERATIONS
During the year Oriole began its first drill programme at the Bibemi licence in Cameroon for a planned 3,080 metres of diamond drilling in 28 holes.
Exploration continued with the completion of a 6,901m air core programme, drilled at the Faré prospect in the north of the licence, as part of its continued earn-in at the Senala licence in Senegal.
The group was also awarded an extensive 3,592km2 licence package in central Cameroon.
INVESTMENTS
At the former Karaaǧaç gold project in Turkey, Oriole is pursuing payment of $425k owed by the operator, Anadolu Export, with the case heading for court.
The company expects news this year of a $1m debt owed by a former partner in Turkey, who defaulted on tax payments.
Programmes continue at Muratdere Madencilik copper-gold project in northern Turkey and the Pandora, Assaleyta and Hesdaba licences in Djibouti.
OUTLOOK
Non-executive chairman John McGloin said that Oriole was now extremely well placed with active drilling campaigns at core projects in Cameroon and Senegal and investment projects in Djibouti and Turkey, and very shortly in Egypt.
“Now with a robust gold price, a significantly improved share price and a strong cash position, we will look back on 2020 as a year of significant progress in the development of the company, providing the foundation blocks to support our growth.
“In 2021, we expect news across five drill programmes, as well as the generation of targets across our 3,592 km2 Central Cameroon licence package.
“With cash in the bank, and further cash potentially coming in from warrant exercises and the legacy asset realisation programme, the near-term exploration programme is fully-funded.
“We continue to look for further opportunities that we believe would add shareholder value.”