Regency Mines (LON:RGM) announced its intention to “move beyond copper and nickel” as it revealed it made a full-year profit.
The group, which has seen as 500 per cent rise in the share price since the financial year-end of June 30, posted a pre-tax surplus of £602,085 compared with a loss of £716,922 12 months earlier.
This was primarily due to a turnaround in the contribution from associate companies, which rose to £903,809 from a loss of £271,327.
The results also revealed Regency currently has £1.64 million on the balance sheet after a series of share placings.
It also has a £1.3 million (US$2 million) loan agreement in place to finance acquisitions.
In November, the group spent just over £1 million to take a 10.04 per cent stake in Pakistan-based Oracle Coalfields (PLUS:ORCP), and chairman Andrew Bell revealed it was part of subtle diversification.
“The company increasingly places emphasis on long-term strategic moves, and on increasing its weighting in fields where it believes it can have leverage through potential scale in the event of success,” he told shareholders.
“That will involve, at the right time, moving beyond copper and nickel, attractive though we believe those commodities to be, even though we intend to keep them at the core of our portfolio.
“In the period since the year end Regency has made a significant investment for the first time in coal, through its investment in Oracle Coalfields.”