Beowulf Mining, the Swedish miner which has seen its share price more than halve over the last month, has blamed the recent market volatility for the performance.
Alongside the group's third quarter update, executive chairman Clive Sinclair-Poulton said that the due to the "considerable turmoil and volatility in global economies and capital markets", the sense of uncertainty has had a detrimental impact on global share prices, exchange rates and commodity prices.
On 16 November, the company completed its largest fundraising to date, raising around £6.7m via a placing and subscription with new UK institutions and Swedish investors. "The company believes that capital markets will continue to prove difficult in 2012 and that it is therefore prudent to secure funding when possible and is delighted with the continued interest shown in the Company and its future potential," Poulton said.
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He reassured investors that with the European Union only producing 16% of the iron ore it needs, there is good potential for its iron ore resources.
The firm again recorded no revenues in the nine months ended 30 September, reflecting its ongoing exploration activities. However, due to increased administration expenses, the loss before tax widened from £320,000 to £443,000 in the nine-months, compared with the year before. Basic loss per share fell to 0.27p, from 0.24p.
Nevertheless, as of 30 September, the value of its total assets was £2.73m, up from £1.75m last year.
The share price fell 2.19% to 16.75p by 15:03.
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