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.
-
UK-US trade deal announced: US cuts tariffs on UK car imports to 10%Keir Starmer and Donald Trump have announced a UK-US trade deal, but the US president has refused to lift baseline tariffs on most UK goods. What does it mean for the UK?
-
How to use mid-caps to diversify from the USMedium sized companies are overlooked by investors but could offer an attractive ‘sweet spot’. We consider the case for mid-caps amid market volatility.
