Losses widen in first half at Stratex International

Gold and base metals exploration and development company Stratex International announced its unaudited interim results for the six months to 30 June on Thursday, with an operating loss of £1.19m.

The AIM-traded company said this compares to an operating loss for the same period last year of £1.18m.

It posted a pre-tax loss of £1.985m, compared to a pre-tax loss for the same period last year of £1.388m.

Stratex put the increase in the pre-tax loss during the period down to the reduction in the company's interest in its associated companies, Thani Stratex Resources and Muratdere Madencilik, resulting in accounting losses in the period of £0.83m and £0.32m respectively.

Additionally, Stratex has withdrawn from the management of Tembo Gold Corporation and Dr Bob Foster has resigned from its board of directors.

As a result, the investment in Tembo no longer meets the requirements for equity accounting and a net loss of £1,069,267 has been recognised.

The company said the losses have been partially offset by its share of profits from production at the Altıntepe Mine which amounted to £1.6m.

Stratex said it was continuing to keep a tight control on costs, and the net cash used in operating activities during the period was £0.8m, compared to £1.67m in the same period last year.

The cash balance for the group on 30 June was £2.73m, up from £2.53m last year.