Mozambique-focused Ncondezi Coal Company posted big losses in 2011 but said it expects significant developments this year.
The firm reported pre-tax losses of $6.98m for the year to the end of December 2011.
This amounted to a loss per share of $5.90.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The firm said a definitive feasibility study (DFS) of its Ncondezi Project in the Tete Province was on track and expected to be completed in the third quarter of 2012.
Completion of the study would bring the project "one large step closer towards development and production", said Chief Executive Graham Mascall.
"In anticipation of this, management and the board will be holding a workshop with the group's DFS consultants and contractors at the beginning of May to confirm key parameters for the Group's Ncondezi Project that will provide the definition and framework for completion of the DFS in September 2012," he added.
"Following the workshop the board will update the market accordingly."
Investors took heart from the announcement, pushing the company's shares up 5% in early trading.
-
Which UK region has the most in savings? Average savings by areaThe amount people have in their savings differs from region to region in the UK. How does your nest egg compare to those living nearby?
-
Doug and Mary Perkins: Specsavers’ clear-sighted foundersHelped by the deregulation of the sector in the 1980s and brilliant advertising, Mary Perkins and her husband Doug have taken Specsavers to the top of the optometry market
