In the year to December 2016 show that Cadence Minerals PLC (LON:KDNC) boosted operating profits to £2.84 mln from £240,000 in 2015, as unrealised profits on assets available for sale were recognised.
These assets included the company’s key investments in Bacanora Minerals and European Metals Holdings. Total income for the period rose to £5.8 mln from £2.29 mln, although pre-tax profits were adversely affected by a one-off £1.6 mln financing charge.
Diluted earnings per share were 0.08p, up from the loss per share of 0.06p booked in 2015.
Meanwhile, administrative costs rise £690,000 to £2.94 million due to an increase in the amount of detailed due diligence undertaken on potential new assets and development and support of our current assets. These fees were paid to third party providers.
The total assets of the company increased from £19.58 mln at the end of 2015 to £35.42 mln. Total liabilities increased from £2.64 mln at the end of 2015 to £10.92 mln at the end of 2016. This was driven by an increase in borrowings associated with the convertible loan note issue during the year.
The company said that its two main assets, Sonora in Mexico and Cinovec in the Czech Republic could account for as much as between 7% and 10% of global lithium supply by 2025.