SolGold plc (LON: SOLG) shares barely moved after the company reported higher losses in the 2021 financial year ended 30 June 2021 than the 2020 fiscal year.
The mining company reported a total loss of $22.89 million in fiscal 2021 compared to $14.12 million in fiscal 2020, yet its shares did not fall significantly.
SolGold had cash at hand of $109.6 million at the end of its fiscal year, which boosted investor confidence.
However, the company is yet to generate revenues from its operations since it is still an exploration company and warned investors that it will likely raise more funds over the next 12 months.
Investors barely paid attention to the above facts, evidenced by the lack of movement in SolGold’s share price following today’s annual report.
I would have expected a more severe reaction from the markets, but it seems investor confidence in the company is relatively high.
Meanwhile, from a technical perspective, SolGold shares are trading within a wide range and could fall further in the future.
The company has several promising projects, including 13 priority projects in Ecuador still at the exploration stages, which could take up to 4 years, with some projects expected to start production by 2025.
SolGold also has seven ongoing projects in Australia with tenements across central and southeast Queensland.
However, its most promising project is the Alpala deposit in the Cascabel concession located in Ecuador’s Andean Copper Belt, renowned for its massive copper deposits that account for almost half of the world’s copper production.
It remains to be seen whether investors confidence in SolGold will be rewarded in future as its projects progress slowly towards production.
*This is not investment advice.
SolGold share price.
SolGold shares barely moved after releasing its fiscal 2021 annual results.