Argos Resources profits dive in first half

Argos Resources saw its profits tumble during the first half of its trading year.

Pre-tax profits more than halved from $81,000 to $37,000 in the six months to 30 June as a result of a $19,000 foreign exchange loss, a marked turnaround from the $37,000 gain seen a year earlier.

Earnings per share were cut 50% to $0.02 each.

Cash and equivalents rose 30% to $884,000.

Argos Resources continues to hold a 5% overriding royalty interest in Noble Energy's North Falkland licence PL001 - adjacent to licences PL032 and PL004 in the large Sea Lion oil field and the Zebedee and Isobel-Elaine discoveries.

"We believe that Licence PL001 is well-positioned in a proven oil basin and contains a large inventory of attractive prospects," said Argos.

Argos receives quarterly cash payments totalling £300,000 per year from Noble and its licencing partner Edison. The AIM-listed firm asserted this figure was sufficient to meet its ongoing costs.

As of 1045 BST, Argos Resources shares had ticked up 1.52% to 6.32p.