Tri-Star Resources narrows loss as it nears completion of Oman project

17th Sep 2018 08:31

(Sharecast News) - Mining and minerals processing company Tri-Star Resources announced its unaudited results for the six months ended 30 June on Monday, reporting that its principal activities during the period continued to be its investment in an antimony and gold production facility in the Sultanate of Oman.The AIM-traded firm said that project was being developed by Strategic & Precious Metals Processing, an Omani company in which Tri-Star holds a 40% equity interest.It said its ongoing cash administrative expenses were down 30% to £0.29m, with annualised salaries falling 45% in cash terms since the second half of 2017 as the company moved to a share-based compensation structure, designed to preserve cash resources and align management more closely with shareholders.The company reported a major reduction in costs on non-core exploration assets, as its primary focus remained on the flagship investment in Oman.A total of £3.6m of the short-term secured loan note had been repaid already year, leaving a balance of £1.0m as at 31 August.Net assets rose 130% to £5.8m, while loans to Strategic & Precious Metals Processing increased 60% in the period to £7.1m, with that currently accruing interest at 15% per annum.Tri-Star announced the successful completion of a £13.0m fund raising through the placement of new ordinary shares, announced on 25 June and completed after period end.Of the funds raised, £10.6m was being injected into Strategic & Precious Metals Processing in the form of equity and mezzanine debt.The company's loss before tax narrowed to £1.03m from £5.37m a year ago."This financial report comes at an exciting time in the history of the company with our flagship Oman project almost ready to produce first metal," said acting chief executive officer Karen O'Mahony."Whilst the SPMP management has been working hard on site in Sohar, we have been focusing on streamlining Tri-Star and its other subsidiaries to ensure that as much value as possible from the underlying asset is realised for the company's shareholders."These results reflect our focus on cash cost reduction at the corporate level, allowing shareholders funds to be applied to getting this project into production."O'Mahony said Tri-Star's management had also been actively involved at SPMP board level to support that management team with sourcing feedstock and arranging financing facilities."Steven Din joined SPMP on 1 August, and has hit the ground running by making key interventions."He has brought in very experienced external consultants to help with the completion of the gold calcine and the commissioning process."He and the team also have managed to secure several new and interesting feedstock deals."