The Malawi-focused rare earths specialist reported net income of C$1.17mln in the three months to the end of June, compared to a loss of CS$1.16mln the year before.
The company booked a non-cash unrealised gain of C$1.34mln on the revaluation of warrants that have been issued but not yet exercised; last year in the same period, the company took a non-cash charge of C$274,101 for the warrants.
Expenses during the reporting period declined to C$163,982 from C$882,203 the year before, with mineral exploration spending subsiding to C$46,316 from C$431,000 in the same quarter of 2014.
The company has significantly reduced its overhead costs during 2015, and this trend continued in the second quarter with general overhead costs lower at C$180,993 compared to C$243,991 the year before.
The company does not have any meaningful revenues at present.
Cash at the end of June stood at C$62,303, down from C$1.27mln a year earlier.
Management has significantly scaled down its administrative and exploration expenditures for 2015 and as such believes that the funds available combined with future equity placements will generate sufficient cash flow to maintain the company’s ability to meet its short and medium term objectives and milestones, Mkango told investors.
The company is currently funding its operations with equity raised in a non-brokered private placement, which closed in two tranches on March 24, 2014 and April 3, 2014.