Oracle Coalfields narrows annual losses

Oracle Coalfields narrowed its annual losses as the company made progress on its lignite mineral property in the south-eastern desert of Sindh Province, Pakistan.

Oracle Coalfields narrowed its annual losses as the company made progress on its lignite mineral property in the south-eastern desert of Sindh Province, Pakistan.

The coal explorer reported an operational loss of £0.75m for the year ended December 31st 2012, down from £0.95m a year earlier.

During the year, the company advanced on the Pakistan mine with the issuance of the mining lease, the signing of a joint-development agreement with Karachi Electric Supply Company and the preparation of an implementation plan to proceed with mine development and production.

At the end of the year, the group had cash and cash equivalents of £0.99m, compared to £1.6m a year earlier.

Total assets less current liabilities came to £3.52m, down from £4.23m in 2011.

"Oracle has therefore now put in place the building blocks for project implementation and is in active discussions with potential strategic partners, developers and potential contractors to develop both the mine and a mine mouth power plant with support of the provincial and national governments," Chief Executive Officer, Shahrukh Khan, said.

"An integrated mine and power plant development will provide security to partners and investors through transparent coal pricing arrangements and a long term power purchase agreement for at least 30 years."

He said the development of the coalfield would alleviate a power shortage in the country and supply competitive electricity.

Early this year £0.93m extra capital was raised, including contributions from shareholders and management, to cover its working capital requirements throughout 2013.

However, additional funds will be required to develop the Block VI coal mine. The group now looking at options to raise debt and equity. It is in talks with potential investors and technical partners from the Middle East and Far East.

RD

Recommended

Share tips of the week – 30 September
Share tips

Share tips of the week – 30 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
30 Sep 2022
The best British tech stocks from a thriving sector
Share tips

The best British tech stocks from a thriving sector

Move over, Silicon Valley. Over the past two decades the UK has become one of the main global hubs for tech start-ups. Matthew Partridge explains why,…
29 Sep 2022
These 3 top value stocks offer
Share tips

These 3 top value stocks offer

Professional investor Adam Rackley of Cape Wrath Capital highlights three overlooked value stocks to buy.
29 Sep 2022
Three top-notch Asian stocks to buy
Share tips

Three top-notch Asian stocks to buy

Professional investors Adrian Lim and Pruksa Iamthongthong, managers of the Asia Dragon Trust, pick three of their favourite Asian stocks to buy now.
23 Sep 2022

Most Popular

Why everyone is over-reacting to the mini-Budget
Budget

Why everyone is over-reacting to the mini-Budget

Most analyses of the chancellor’s mini-Budget speech have failed to grasp its purpose and significance, says Max King
29 Sep 2022
How the end of cheap money could spark a house price crash
House prices

How the end of cheap money could spark a house price crash

Rock bottom interest rates drove property prices to unaffordable levels. But with rates set to climb and cheap money off the table, we could see house…
28 Sep 2022
Why UK firms should start buying French companies
UK stockmarkets

Why UK firms should start buying French companies

The French are on a buying spree, snapping up British companies. We should turn the tables, says Matthew Lynn, and start buying French companies. Here…
28 Sep 2022