Richland Resources Ltd (LON:RLD) has reported a narrowed loss in its half-year results as it continued its push toward restarting production at its Capricorn Sapphire project in Queensland.
The miner reported a pre-tax loss of US$778,000 for the period, less than the US$964,000 loss reported a year ago, while revenues were at US$50,000 from US$1mln previously due to a suspension of operations.
READ: Richland Resources reports increase in revenue and seeks additional financing
The firm ended the period with unrestricted cash and cash equivalents totalling US$100,000.
Post-period end, the company said it had drawn down and received the remaining £200,000 of a £300,000 secured convertible loan facility after receiving the first £100,000 during the first half.
Additionally, the company had signed an addendum to the facility today to increase the amount by £100,000 to provide additional working capital as it sought to restart the Capricorn Sapphire project or conclude sale negotiations with different parties.
Anthony Brooke, Richland’s chief executive, said the first half had been focused on preparing the ground at Capricorn Sapphire pending sufficient funding being secured to recommence mining operations, whilst at the same time undertaking test drilling and general maintenance to facilitate a more focused open pit operation and ultimately higher yield production once mining recommences.
He added that the firm’s sightholder buyers and clients in Thailand were “keen for mining to restart” as inventories were running low and socially responsible sapphire sources were limited globally.
Upon production recommencing, potential forward sales of blue rough production were “very positive”, Brooke said, with non-traditional sapphire cuts reportedly being “highly sought after” in the retail segment.
In mid-morning trading Monday, Richland shares were steady around 0.1p.