06/03/14 – Baobab Resources Loss Narrows On Lower Exploration Expenses

LONDON (Alliance News) – Baobab Resources PLC Wednesday said its pretax loss narrowed in its first half as exploration expenses fell and its definitive feasibility study at its Tete project remains on track.

The Mozambique-focused pig iron and ferro-vanadium company said its pretax loss narrowed to GBP3.3 million in the six month to December 31, 2013 from GBP4.1 million the previous year. Exploration expenses almost halved to GBP1.7 million from GBP3.2 million in 2012, though administrative expenses increased to GBP1.6 million from GBP1.0 million.

The company is yet to achieve any revenues as it moves toward development.

Baobab Resources added that its definitive feasibility study for the Tete pig iron and ferro-vanadium project is on schedule for completion towards the end of 2014, and SRK Consulting SA’s measured resource estimate for the site remains on target for completion by the end of the first quarter.

In addition, Baobab is actively seeking development partners for the USD1.1 billion Tete project and has commissioned Standard Chartered Bank as a corporate advisor.

The company said that, after the reporting period, its shareholders made significant payments to the company. African Minerals Exploration & Development SICAR SCA transferred funds as a result of the conditional placement of 8.5 million shares at 15 pence per share, and International Finance Corp contributed roughly GBP425,000 as their share of joint venture expenses on the Tete pig iron/vanadium project.

Baobab Resources shares were down 6.4% to 10.88 pence Wednesday

Source – LSE.co.uk