Praetorian Resources reports net losses in half yearly

Praetorian Resources reported considerable net losses Friday - pointing the finger at challenging market conditions.

Praetorian Resources reported considerable net losses Friday - pointing the finger at challenging market conditions.

The Guernsey-based investment holding company has released its half-yearly report for the period ending September 30th 2012, revealing a net loss of £1.87m.

The firm said the figure reflected the effects of the global financial crisis on the market's resources sector.

"Market conditions in the resources sector have been extremely challenging as a global market correction has resulted in a largely indiscriminate sell off in both small and mid-cap resource equities, negatively affecting the share prices of both good and bad companies alike," the company said in a statement.

"In such a distressed climate there are several attractive refinancing opportunities as an increasing number of resource companies are requiring affordable medium-term funding and market support to develop their assets."

The group had a cash balance of circa £4m in the report and plans to expand the firm's capital base in the New Year.

Praetorian Resources was formed as a contrarian investment company to explore under valuations evolving in the resources sector.

The company has predicted "the greatest wash out" of junior mining stocks that resources sector has ever seen.

"It is likely that a substantial number of the smaller exploration companies simply will not be around by the summer of next year," the company said.

Praetorian's shares were down 4.44% to 43.00p at 15:43 Friday.

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

How the stamp duty holiday is pushing up house prices
Stamp duty

How the stamp duty holiday is pushing up house prices

Stamp duty is an awful tax and should be replaced by something better. But its temporary removal is driving up house prices, says Merryn Somerset Webb…
25 Sep 2020
The electric-car bubble could get an awful lot bigger from here
Renewables

The electric-car bubble could get an awful lot bigger from here

The switch to electric cars is driving a huge investment bubble. But that’s not necessarily a bad thing, says John Stepek. Fortunes will be made and l…
24 Sep 2020
Can Rishi Sunak’s winter plan save the UK economy?
UK Economy

Can Rishi Sunak’s winter plan save the UK economy?

With his Winter Economic Plan, chancellor Rishi Sunak is hoping to support the economy through the dark months ahead as restrictions tighten again. Jo…
25 Sep 2020