Berkeley Mineral 'positive' despite bigger loss

31st Mar 2011 10:46

Losses increased at Berkeley Mineral Resources during the first half, but production at Kabwe in Zambia should start during the second half and the outlook is "very positive".The company lost £863,632 in the six months ended 31 December 2010, up from £232,468 the year before, although the latest number includes £433,440 of share-based payment costs for the issue of share options. Production at Kabwe is now scheduled to begin in the second half of this year and the firm is in negotiations with potential off-take partners for the supply of zinc and lead concentrates.Berkeley, in the process of buying the rights to the tailings dumps at Kabwe not previously owned, is also negotiating another acquisition."The outlook for the company is now very positive," it said. "We have agreed to acquire, subject to conditions precedent and due diligence the rights to above-ground stockpiles containing substantial amounts of metal.""Entering production of our first long-life project at Kabwe, with first cash generation later this year, will make BMR a significant base metal supplier." LW