Critical Metals Posts Higher Annual Loss Amid Expansion Efforts

Critical Metals Posts Higher Annual Loss Amid Expansion Efforts

Expansion Leads to Increased Losses

Critical Metals has reported a larger pretax loss of GBP 2.7 million for the financial year ending June 30, marking a significant increase from the previous year’s GBP 661,743. The company, which is transitioning from exploration to production, attributes the increased loss to higher exploration and administrative costs.

Molulu Project Development

Within the past year, the company has upped its stake in the Molulu project, located near Lubumbashi in the Democratic Republic of the Congo, from 40% to 70%. The development phase of the project has seen a flurry of activity, including pre-production of copper ore, geophysical studies, and infrastructure improvements, such as road rehabilitation.

Operational Updates and Financials

Despite the focus on pre-production activities, the company has yet to generate revenue. Expenditures have jumped to GBP 2.7 million, fueled by both exploratory work and a rise in administrative costs. The firm’s financial reserves have decreased, with a reported cash balance of GBP 411,696 as of June 30, down from GBP 824,251 a year earlier.

Outlook for the Future

The company maintains a positive outlook, citing the underlying strong market demand for copper and the ongoing development at the Molulu project. Plans for the coming year include continuing to evaluate additional acquisition opportunities and furthering the expansion of operations at Molulu.

Stock Trading Status

Trading of Critical Metals’ shares remains on hold, last priced at 17.00 pence in London trading.

You may also be interested in latest Precious Metals news! icon

    Subscribe to the most timely news about the metals market

    Metals Wire's weekly digest for mining and processing industry professionals, investors, analysts, journalists.