Natural resources explorer Galileo Resources PLC (LON:GLR) has told investors that the recent turnaround in the copper price will serve it well as it enters the New Year.
The copper price has added more than a third in recent weeks – partly due to the ‘Trump bump’ – to sit at around US$5,400 tonne.
Galileo’s main asset is Concordia, a copper project in South Africa.
“I am very pleased to report that the copper price has responded to the long term prognosis that copper will be in short supply as we approach 2020,” said chairman Colin Bird.
This will impact on our key project, Concordia.”
A full geophysics summary report from the project is due in January, and Bird said the initial results are “exciting”.
Following the report, drill testing at Concordia is expected to begin by mid-February, the company said.
For the six months to the end of September, Galileo posted a comprehensive loss of £538,000, compared to a loss of £171,000 for the same period in 2015.
The group’s cash position was fairly healthy though after it completed the sale of its Gabbs property in Nevada for US$2.5mln during the period.
As of 30 September, Galileo had a cash balance of £1.4mln.
Shares were down 2% to 1.58p.