Xtract Resources narrows loss after reporting first revenues

Metals and minerals producer Xtract Resources announced on Wednesday that it has seen its loss narrow after the company cut expenses and carried out its first gold sale in 2017.

The AIM-traded company saw its pretax loss decrease by 67% to £1.3m over the 12 months preceding 31 December, while the company’s administrative and operating expenses were dialed back by 36% to £1.06m.

Meanwhile, the company’s first gold sales generated revenue of £0.166m, its first recorded sales.

Xtract’s Manica gold mining site in Mozambique has been generating overheads since November and the company said it will review further contractor proposals for the project in the immediate future.

The company also said it expects to conclude an arrangement for hard rock mining in the second half of the year.

Colin Bird, executive chairman of Xtract Resources, said: "The outlook for our sector is strong especially for those companies who have operations or are close to operation. We continue to look for opportunities which might further favourably position the Company within the market and give the potential for an increase in shareholder value."

As of 1458 BST, Xtract Resources’ shares were down 8.26% at 1.58p.