Challenging conditions in the resource sector took their toll on investor Polo Resources (LON:POL) but it remains excited about the potential to grow its portfolio.
Releasing final results for the year to end June, Polo revealed the loss after tax had widened to US$61.2 million (loss of US$19.1 million in 2014), mainly due to a write-down of US$54.6 million against GCM Resources (LON:GCM), Signet Petroleum, Ironstone Resources and Equus Petroleum.
There was also a US$3.5mln hit on the assets at its 90% owned Nimini Gold project in Sierra Leone.
The net asset value per share as at December 17 was 16.09p a share compared to 17.7p at the end of June this year.
Cash at June 30 stood at US$21.5mln (2014: US$30.5mln).
The group's executive chairman Datuk Michael Tang said the group's healthy balance sheet and exposure to near-term cash generating investments had allowed it to stay strong through what has been a challenging period for many companies.
"We continue to follow our strategy of supporting near-term producers with proven reserves and inherent upside potential offering investors a balanced exposure to the resources sector.
"Over the period, Blackham Resources has been a highlight in Polo's investment portfolio with the pre-feasibility study for its Matilda Gold Project being released, the definitive feasibility study expected in the first quarter of 2016 and first gold pour anticipated for the second quarter of 2016," he said.
"And although the oil and gas industry is languishing in an environment of oversupply and low prices, we are excited about the prospects of our recent investment in Hibiscus Petroleum as they are on track to generate positive cash flow from the North Sea and grow its asset base in the United Kingdom and Australia.
"The achievements of Blackham and the other investments in our portfolio continue to provide significant upside potential to Polo and I look forward to updating the market with further progress and developments in due course."
This month Polo took an 8.4% stake in Hibiscus Petroleum, a Malaysia listed oil firm, whose assets, it says, are set for a step-jump on completion of two recent acquisitions.
Its current development assets are in Australia with an estimated 8 million barrels of 2P/2C reserves/resources but that's set to jump to around 47million barrels with the completion of the Hydra and Anasuria acquisitions.
Polo shares slipped 13.58% to 1.75p each in early deals.