Oriole Resources PLC (LON:ORR) said it is “encouraged” by a recent increase in the price of gold and several sector developments as it concluded a transformative 12 months that saw its operating losses cut by more than 60%.
For the year ended 31 December 2018, the gold miner reported an operating loss of £2.55mln, 66% lower than the £7.5mln loss from the prior year.
The company also ended the year with a cash balance of £1.29mln, with another £520,000 expected in the second quarter of 2019 from the settlement of a long-running VAT dispute with the UK revenue and customs authority (HMRC).
Another £500,000 is also expected over the next 20 months as part of a pay-out from Oriole’s Turkish partner Andolu.
Tim Livesey, chief executive, said the final step in the company’s “corporate transformation” had been completed in September when the firm changed its name to Oriole from Stratex International and shifted its focus toward its African projects and away from legacy assets in Turkey.
New management team
The firm also appointed a new management team and altered its strategy toward early stage exploration.
John McGloin, Oriole’s non-executive chairman, added that the recent rise in the price of gold, which has increased 8.3% in the last 6 months to around US$1,306 an ounce, was encouraging as well as “potential opportunities” arising from the merger of gold mining giants Barrick Gold Corp (NYSE:GOLD) and Randgold Resources in December and a possible acquisition of Canadian miner Goldcorp Inc (NYSE:GG) by US firm Newmont Mining Corp (NYSE:NEM).
“In 2019, we need to build on the foundations we have put in place during 2018. With a new Board and an excellent team of experienced geologists, there is a great opportunity for the Company to establish itself as a high-quality exploration company”, McGloin added.
In early trading Wednesday, Oriole shares were steady at 0.38p.