Zanaga Iron Ore shares were down 7.3% to 1.9p in early morning trading on Friday after the company announced a pre-tax loss of $1.89 million against $1.82 million in FY 2021.
The mining group reported a total comprehensive loss of $1.9 million compared to $1.8 million the last year, and a rise in general expenses to $1.2 million from $1 million year-on-year.
Zanaga Iron Ore confirmed a net asset value (NAV) of $37.7 against $37.6 million in FY 2020, comprised of a $37.3 million in its Jumelles project, $400,000 in cash balances and $80,000 of other net current assets.
The company mentioned a selection of highlights for its financial year, including a funding update in its Shard Merchant Capital equity subscription agreement, with the transaction of 21 million shares subscribed for by the firm resulting in £1.1 million in proceeds received to date following 18 million shares placed by Shard Merchant Capital and a further three million remaining ordinary shares to be placed.
The group commented the proceeds have been applied to general working capital, including the financing of additional contributions to the Zanaga project’s operations.
“During 2021 it was pleasing to conclude an updated costing exercise, using independent technical experts to evaluate the Stage One development costs,” said Zanaga Iron Ore CEO Clifford Elphick.
“Furthermore, an update exercise was undertaken to evaluate the Ore Reserve for the Project. This resulted in the reconfirmation of the Zanaga Ore Reserve – which remains one of the largest ore reserves globally.”
“The Zanaga Project Team have continued to progress key initiatives at the Project. Significant work is underway to evaluate options to move the Early Production Project forward in collaboration with other projects in RoC.”