RAPAPORT... Botswana Diamonds’ loss grew over the past financial year as
the company faced several challenges to its operations, it reported this week.
The miner recorded a loss of GBP 630,009 ($806,460) for the 12 months ending June 30, versus a
deficit of GBP 161,868 ($207,200) the previous year, it said Monday. The
company incurred an impairment charge of GBP 179,524 ($229,800) at its Sunland
Minerals asset as it relinquished some of the licenses it held relating to the
project.
The miner was originally a 50% owner in Sunland, with Alrosa
holding the remainder. However, the Russian miner pulled out of the project last
week, with Botswana Diamonds buying out Alrosa’s share.
Currency fluctuations also hit Botswana Diamonds’ bottom
line, the company said. The effect “represent[s] a material uncertainty that
may cast doubt on the group’s ability to continue as a going concern,” it said.
To continue work on its exploration projects, Botswana
Diamonds will need to raise additional funds, it said.
“Although it is not possible at this stage to predict when
financing efforts will be made, the directors are confident that they will be
able to raise additional finance as required to meet the group’s committed
obligations as they fall due,” the miner added.
Image: Botswana Diamonds exploration site. (Botswana Diamonds)
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