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.
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"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
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