LONDON (Alliance News) - Sable Mining Africa Ltd on Tuesday reported a narrowed pretax loss from continuing operations and said it has embarked on a cost-reduction programme and reduction of capital outlays to ensure funds are used well amid a tough time in commodities.
Pretax losses from continuing operations narrowed to GBP1.3 million in the six months ended September 30, from GBP3.3 million the corresponding period the prior year, as operating expenses fell. Sable's net loss, which includes discontinued operations, widened to GBP8.9 million from GBP3.1 million. Cash fell to GBP5.0 million at the end of the period from GBP6.2 million at the start of the half.
"Due to shifting commodity demand fundamentals, during the six months ended 30 September 2015 we focussed on ensuring prudent allocation of resources, enabling us to reduce capital outlay. During the period we signed an important memorandum of understanding with CITIC Construction Co, Ltd relating to the development of a coal fired power plant at our Lubu coal project and finalised certain key technical studies relating to our Nimba project," Chief Executive Andrew Groves said.
"We remain convinced that there remains future value in Nimba and are constantly evaluating options to ensure that maximum value accrues to our shareholders. Whilst we operate in this uncertain and depressed environment we are also evaluating additional projects that have potential to generate shareholder value," Groves added.
Shares in Sable Mining were down 15% at 0.36 pence on Tuesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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