Blenheim Natural Resources widens loss, signals challenging times

Blenheim Natural Resources’ chairman has signalled challenging times for the company and for the natural resources sector.

It came as the AIM-listed company, formally known as Coburg Group, released its full-year results to 30 April and reported a £252,000 loss, wider than 2014’s £79,000 loss.

It attributed a portion of the 2015 loss to the partial impairment of the company's investment in African Eagle Resources of £87,000 as well as a loss on disposal of financial assets of £49,000.

Revenue also decreased, down from £3,226 to £2,361.

“These results reflect the continued downturn in the natural resources sector and the significant rout in commodity prices, aptly illustrated by the share price of Glencore,” chairman Chris Ells said.

“In spite of these results, the Blenheim board remains quietly confident that the slide in commodity prices may soon touch bottom.

“Our stated strategy of making investments in "good value" companies and projects in the natural resources sector by way of cash and Blenheim stock remains our goal,” he said.

The company has also placed 315,000 new shares to raise £141,750.

It said it would enable Blenheim Natural Resources to make further investments and to provide general working capital.