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Third quarter results from Beowulf Mining (LON:BEM) reflected a period of progress for the group, which is developing a significant iron ore deposit in northern Sweden.
It exited the period in a strong financial position with £4.2 million on the balance sheet.
Operationally, it has carried out 5,549 metres of drilling on the Kallak North deposit, where a test mining application has been made.
An ambitious 19,000 metre programme is planned to give a JORC compliant resource for the twin Kallak South deposit.
As is normal for a company at the stage of Beowulf’s development it was loss-making. The shortfall was £674,000, up from £433,000 at the same point last year.
Seymour Pierce added the cash position leaves Beowulf well financed to deliver on the flagship Kallak project.
Results of the drilling campaign on Kallak North will be fed into a new JORC estimate in the coming weeks, while the drilling on the Kallak South prospect should provide the data for a first JORC compliant resource on this part of the project.
Next year should also bring news of further metallurgical test work and initial project design work, added Seymour Pierce, which retains a ‘buy’ stance and 18.5p target.