China Africa Resources reduces loss, still has zero income

China Africa Resources posted its half-year report for the six months to 30 June on Wednesday, reducing its loss but still not reporting any income.

The AIM-traded company made an operating loss of $233,000 for the period, compared with $297,000 at the same time last year and a total operating loss of $546,000 for the 2015 calendar year.

Its basic and diluted loss per share, attributable to the equity holders of the parent, hit 1.03 cents, compared with 1.32 cents in the first half of 2015 and 2.44 cents for the whole of 2015.

“The losses during the period are the costs incurred in managing the head office in the UK augmented by an exchange loss on sterling and Namibian deposits,” China Africa Resources’ board said in a statement.

“The board has implemented a number of cost cutting measures post year end which will significantly reduce the ongoing costs of the group.

“However in order to continue to meet the group's working capital needs and development plans some additional funding will be required either through equity raisings or other financial arrangements of which there can be no certainty,” it added.

As at 30 June 2016 the company said it had $0.2m in cash reserves, having repaid a loan of $0.2m.