Oriole Resources plc recorded a £1.45 million impairment, comprising 92% of overall losses, from its holding gold interests in Egypt.
FINANCES
The group’s main operations are exploration projects in Cameroon, partner exploration activities in Senegal, and the management of its investment and royalty positions.
The final results for the year ended 31 December 2022 showed total loss for the year of £1.56m (2021: loss of £1.56m), inflated by Thani Stratex Resources’ relinquishment of the Hodine exploration licence, Oriole’s legacy asset.
The impairment provision has no cash-flow implications.
Administration costs rose 9% to £1,182,000 (2021: £1,083,000), from the company establishing an administration team in Cameroon, and more travel and legal fees over asset realisation efforts in Turkey and elsewhere.
Also included is the £57,000 total value of the shares taken by directors in lieu of salary for a number of months during the year, which resulted in £37,000 of tax on non-cash payments.
Incoming funds totalled £900,000 with exploration expenditure of £840,000 in Cameroon.
Operating losses fell to £530,000 (2021: £1.44m), which includes a favourable £1.11m swing in unrealised foreign exchange movements.
Oriole raised a total £952,000 from the issue of equity and the continuing director salary sacrifice scheme, and spent £842,000 on advancing the projects in Cameroon.
PROJECT FINANCING
Chief executive Tim Livesey said that the company’s success was “hugely disconnected” from the value the market ascribes to those assets, and to its Senala gold project on Senegal.
“At the current share price we believe we are more likely to see a better reflection of our value by looking for finance at the project level wherever possible, and that is what we are doing, alongside the continued efforts to realise value from the legacy assets.”