Panthera Resources narrows losses as it works to progress Bhukia

Panthera Resources reported an operating loss in its audited results on Friday, which its said reflected its ongoing status as an exploration company.

The AIM-traded firm said its consolidated loss for the year ended 31 March, after providing for income tax and eliminating non-controlling interests, amounted to $1.55m, narrowing from $2.48m year-on-year.

It said it incurred a net loss of $1.58m, and had operating cash outflows of $1.44m.

The group had cash of $0.19m as at 31 March.

Subsequent to the year-end, the board noted that the second tranche was received from Galaxy, and most recently the financing package with Republic Investment Management was restructured, such that payment of £0.5m was accelerated and was now due “shortly”.

It said that on current expenditure levels, all current cash held would be used within 12 months.

The board explained that its auditors had highlighted that the group's ability to continue as a going concern was dependent on raising additional capital, adding that a key factor affecting that was the granting of the prospecting licence (PL) for the Bhukia Gold Project, and necessary environmental and forestry permits, which would trigger an additional $0.75m from Galaxy and £1m from Republic Investment Management.

Panthera said it would keep the market updated on progress with the PL grant, and its funding requirements.

“I am delighted to be able to report results for our second year and first whole year since listing on the AIM market in December 2017,” said Panthera Resources chief executive officer Geoff Stanley.

“An exciting partnership was negotiated with Galaxy that is designed to provide strategically timed capital injections to Panthera while advancing our Bhukia joint venture project in India by aligning Indian capital, technical skills and business capabilities with the success of the project.

“While the Government of Rajasthan (GoR) spuriously rejected the joint venture’s rightful claim to a prospecting licence, the Honourable High Court of Rajasthan passed an interim stay order protecting our rights over the entire area of the PL application.”

Stanley said the strength of the firm’s case had allowed it to recommence negotiations with the GoR, giving Panthera “another avenue” to a potential successful outcome alongside the court process.

The next court hearing was currently scheduled for 18 October.

“On the west African front, the company's management was able to further leverage its depth and breadth of experience, its network of connections, and its technical capabilities to significantly upgrade its portfolio with the addition of the Labola property.

“Labola sits on an exciting nine kilometre long gold mineralised structure and has been the subject of a previously reported 600,000 ounce gold resource which we will be working diligently to confirm and expand.

“In addition, targets at the three existing properties were further upgraded and await drill testing.”

Since the 30 March balance date, Geoff Stanley noted that Panthera had successfully restructured the Republic Investment Management third tranche investment, which now allowed for a near-term capital injection of £0.5m to support the company in advance of the Bhukia joint venture project PL grant.

“This financing is an excellent example of the success that can be achieved with supportive shareholders who share the company's vision for value creation.”