The Capital Metals PLC (LON: CMET) share price barely moved after the mining company focused on mineral sands resources in Sri Lanka released its interim results for the first half of its fiscal year ended 30 September 2021.
The mining and exploration company revealed that it had been awarded an Environmental Impact Assessment (EIA) Permit in late November despite the impact of the COVID-19 pandemic restrictions, which slowed down the approval process significantly.
Capital Metals reported a pre-tax loss of $1,196,828 for the six months compared to last year’s $353,588 loss, given that it is an exploration company that is yet to start generating revenues.
However, the group had a cash balance of $1,199,612 at the end of September, giving it significant leeway to fund its future operations without raising additional cash in the near term.
Other operational highlights of the report include the appointment of Richard Stockwell as a director. Richard has over 20 years of experience in the mineral sands industry as a technical mining expert.
Capital Metals also appointed James Mahony as its new Chief Financial Officer (CFO) after the resignation of the previous finance director Anthony Samaha.
The company highlighted the rising mineral sand prices driven by supply and demand factors, including the closures of Rio Tinto’s Richards Bay mine, among other factors.
The firm intends to construct the mining facilities for its stage 1 heavy mineral concentrate in H1 2022 and expects to start commercial operations in H2 2022.
Greg Martyr, Capital Metals Chairman, commented: “This has been a transformational period for Capital Metals, culminating in the award of our Environmental Impact Assessment Permit (“EIA”) on 22 November 2021, despite the significant difficulties experienced in Sri Lanka during the COVID-19 pandemic.”
Investors were unmoved by the company’s statement that it expects to start commercial production within the next 12 months. However, the company’s share price appears quite attractive at current levels.
*This is not investment advice. Always do your due diligence before making investment decisions.
Capital Metals share price.
Capital Metals’ share price barely moved after the six-month interim results.
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