Assets rise and losses narrow at Regency Mines

Natural resources exploration and development company Regency Mines announced its unaudited half-yearly results for the six months to 31 December on Friday, with a £0.31m rise in total assets from the June 2016 year end level to £4.9m, and a rise in shareholders' equity of £0.48m over the same period to £4.17m.

The AIM-traded firm said revenues over the six months saw a turnaround to a positive £98,637 from a negative £70,740 year-on-year, with the sale for AUD 0.1m of its 4% residual interest in the Fraser range tenements in Australia.

As a result, its pretax loss narrowed to £0.18m from £0.31m.

Administrative expenses rose slightly to £0.27m from £0.26m year-on-year.

Within that figure Regency’s board said salary-related costs continued to reduce, with a reduction of 43%, but that was offset by increases in audit and accountancy costs, while website and design costs increased as a result of the company developing and launching a new website and online presence.

“Regency expects to see one and possibly two of its metallurgical coal assets enter into stable production by the 30 June year end, and to start generating profit,” chairman Andrew Bell said of the company’s prospects.

“The Rosa shareholders' agreement provides for quarterly distribution of a substantial proportion of the income generated, and the next financial year should see the start of significant cash flows from this source.

“The company expects to see the realisation of its objective of generating a stable source of recurring income within 2017.”

Bell said the board was looking forward to the IPO of Curzon Energy as another potential source of long term growth and of income.

“Meanwhile non-core assets, whether in the oil or mineral sectors, will continue to be reviewed with a view to early disposal.

“Regency's focus is now on the two aims of simplification of its structure and cash generation, with a view to becoming an institutionally held stock.

“With this in view, we expect at the appropriate time to take measures to further strengthen the board.”