Ncondezi looks to bright 2012

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.

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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.