JSE-listed exploration company Chrometco posted a net profit of R5,9-million for the year ended February 2009, compared with the previous year’s profit of R9,2-million, it reported on Monday.
Headline earnings a share were 3,30c a share, down from the 3,67c a share recorded at the year-end 2008.
Chrometco stated that during the period under review, management focused its attention on the conversion of its used old order mining rights at its Rooderand property, to new order mining rights.
The successful conversion of this right was the final condition precedent to the sale of its Rooderand chrome ore reserve that currently remained outstanding. The balance of the sale proceeds receivable, which was estimated at around R36-million, would be receivable upon the successful conversion of the old order right.
During the first six months of the year under review, the company also entered into negotiations to acquire two copper/cobalt opportunities in the Democratic Republic of the Congo (DRC). However, the cost of acquiring these resources, coupled with the deteriorating investment climate in that country, led management to pursue South African investment opportunities over further projects in the DRC at the present time.
“Management will continue to search for lucrative mineral and resource related opportunities. Given the company’s strong cash position, Chrometco is well placed to select high-value projects from a large pool of available opportunities that are continually presenting themselves to the company,” it said in a statement.
Source: Mining Weekly
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