Edenville Energy narrowed its annual losses as its cash reserves and net assets grew.
The group reported an operating loss of £0.64m for the year ended December 31st 2012, compared to £1.2m the previous year.
Net assets rose to £10m from £8.6m while cash reserves increased to £0.78m from £0.51m.
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Chairwoman Sally Schofield said last year the company made significant progress in developing a coal-based energy business in Tanzania where there is an increasing demand.
Last April the firm published a maiden inferred resource estimate for the Mkomolo deposit of 39m tonnes of sub-bituminous thermal coal with a calorific value of 17 megajoule per kilogram.
It provided a solid platform to initiate a second round of intensive drilling which was completed in November. The drilling resulted in an upgrade in the resource from inferred to measured and indicated categories, increasing the overall tonnage from 39m tonnes (inferred) to 45m tonnes (measured and indicated).
In August, Edenville exercised its final option on the Rukwa Coalfield project, covering Mkomolo, Namwele and Muze, taking the company's interest to 90% with the remaining 10% held by the local partner.
The last project to be drilled in 2012 was Muze which was affected by wet weather and operational problems. Five holes were drilled which added 5.0m tonnes, measured and indicated, to the company's asset base.
Looking ahead, Schofield said 2013 will be a "time of transition" as it focuses on assessing the commerciality of mining and near-surface coal at its Rukwa and iMkomolo projects.
"The resource statement gives us the clarity and confidence to embark on a new phase of activity, with the focus firmly on evaluating the commercial potential of our projects," she said.
"Should the outcomes be positive then we have the opportunity to realise significant value for shareholders and southern Tanzania alike."
Shares fell 10.26% to 0.18p at 14:26 Tuesday.
RD
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