Shares in Velocys (LON:VLS) continued to rally on Monday after the company issued a trading update to investors.
The company, which specialises in renewable fuels, acknowledged the recent share price movement in the statement, updating investors on progress.
Specifically, Velocys said that it continues to drive ‘strong progress’ with its Bayou Fuels biorefinery project in Mississippi.
In addition, the firm said that discussions had been progressing with various strategic investors to invest in the project to fund further development.
Furthermore, the company said it was continuing to collaborate with the ENVIA board to develop options at the project.
The company also continued to talk with insurers, should a resolution be found with ENVIA.
Velocys also said it remained optimistic for future growth, particularly in light of growing demand for renewables.
In recent years, countries have stepped up global efforts to tackle climate change, driving up demand for renewable fuels.
The firm confirmed it is currently partnered with British Airways and Shell in their UK waste to jet fuel project.
The statement also stated that Velocys has cash resources of over £10 million, after the implementation of various cost-saving initiatives.
Due to the ENVIA decision to suspend operations, the company successfully slimmed down costs by £5 million to ensure that its projects remain on budget.
Back in September, the company updated the market on its interim results for six months until 30 June 2018.
Ultimately, company losses deepened during the period, with pre-tax losses rising from £25 million compared to £10.6 million a year previously.
Profits were hit by £15.1 million in exceptional costs during the period, up from £701,000 during the same period a year previously.
Underlying loss, excluding exceptional costs, remained at £9.9 million.
At the time of the interim results announcement back in September, shares were down over 4%.
Shares in the renewables company are currently trading +26.32% as of 10:50AM (GMT), following the most recent company update.
