Argos Resources swings to loss as it searches for farmout partner

Falkland Islands-based exploration company Argos Resources swung to a loss of $0.4m (£0.3m) in its final results on Friday, from a profit of $0.41m a year earlier.

The AIM-traded firm said its cash reserves stood at $0.77m at year-end on 31 December, down slightly from $0.79m at the end of 2018.

It noted that the working interest in its licence was transferred back to the company in February 2019, and explained that the current second phase of the licence, which was due to expire in November, was extended by the Falkland Islands Government until 1 May 2021, with no additional work commitments.

The group said it continued to receive quarterly cash payments from Noble and Edison of £75,000 per quarter during the year, which were recognised as income in 2018 until 27 December 2019, under the termination terms of the participation agreement.

“Argos continued to receive quarterly cash payments from Noble and Edison until 27 December, following their withdrawal from the participation agreement,” the Argos board explained in its statement.

“The cash available will fund the group in its search for a farmout partner.”

At 0913 GMT, shares in Argos Resources were down 5.24% at 3.6p.