Sunrise Resources plc said it would continue to advance its projects after it recorded an increase in losses including impairment of exploration assets in Australia and the USA.
FINANCES
The group is not yet producing minerals from its perlite, pozzalan and sepiolite assets in Nevada and gold in Australia, and has no income other than a small amount of bank interest.
Audited results for the year to 30 September 2022 show losses of £478,223 (2021: £335,252) after administration costs of £291,860 (2021: £318,630).
The loss includes expensed pre-licence and reconnaissance exploration costs of £5,638 (2021: £17,320), impairment of exploration assets of £194,247 (2021: £30,021) and other income of £13,474.
Administration costs include a charge of £1,087 (2021: £19,663) relating to the value of certain share warrants held by employees of Tertiary Minerals plc and by third parties.
Cash administration costs were £290,773 (2021: £298,967).
The group’s cash position at year end was £96,126 (2021: £371,740).
IMPAIRMENTS
Chairman Patrick Cheetham added that Sunrise was progressing its mining lease application at the Bakers gold project in Western Australia where it needs to reach agreement with the regional native title holder for its application to be granted.
“The company could face high legal costs to progress this application but is considering options to defer those costs until such time as the project is more advanced.
“Whilst the company has yet to progress discussions with the native title holder, in view of these potential costs, it has taken the prudent step to impair the value for this project in the company’s accounts until such time as the position is clearer when the impairment could be reversed.”
Mr Cheetham added that the Myrtle gold-silver project in Nevada was also impaired following drilling results from a previous explorer which downgraded the prospectivity of the company’s claim block.
STRATEGY
“Our strategy continues to be to advance our fully mine permitted CS natural pozzolan and perlite deposit in Nevada, whilst new developments during the year at the Hazen pozzolan and Pioche sepiolite projects have seen the company’s business evolve more broadly in the industrial minerals space in Nevada.
“With the CS project, Hazen and Pioche, we now have three key projects moving forward as well as a strong portfolio of royalty interests and wholly owned projects available for joint venture or disposal.
“There are several potential value catalysts within the company’s project portfolio and your board believes we can look forward to productive developments in 2023.”