Alexander Mining plunges despite narrowing annual loss

10th Apr 2015 14:47

Shares in Alexander Mining plummeted on Friday, after the mineral processing technologies group said its commercialisation efforts were hindered and weighed on results.The group narrowed its annual pre-tax loss by 39.4% to £848,000 as sales jumped from £26,000 to £507,000.Despite a promising start, progress throughout 2014 was not as rapid as envisaged, the company said, citing the termination of the commercial agreement and financing with Ebulio Group, its largest shareholder, as the reason.In February, Ebulio opted to terminate the agreement to acquire Red Crescent Resources in Turkey, but Alexander Mining confirmed the two groups continued to have a close commercial relationship.Alexander has since signed a deal with Compass Resources which will provide it with an AmmLeach licence and technical and management services for use at Compass's Browns Oxide copper-cobalt mine in Australia.The group added that Compass was in the process of completing a financial facility with institutional investors, with proceeds set to be used to fund payment due to Alexander.Meanwhile, the group said that its MetaLeach Ltd subsidiary had received patents in Botswana, Namibia and Zimbabwe for a zinc extraction method.Group chairman Matt Sutcliffe said that the weakness in commodity prices had had a negative impact on results, forcing groups in the sector to cut costs wherever possible."In this environment, we believe that the scope for major operating and capital cost savings for existing and potential mines using our technology should be of ever greater interest," he said."Particularly as the opportunity offered has significant environmental benefits."Alexander Mining shares were down 11.80% to 0.617p at 15:25 on Friday.