Aminex PLC (LON:AEX) chair John Bell told investors, in the company’s full-year results, that he remained positive about the future despite a frustrating 2019 waiting for regulatory clearance and more recently the challenges of the coronavirus (COVID-19) pandemic.
Significantly, as announced on Monday, the company secured an extension to its licence for the Ruvuma gas project after it was approved by the Tanzanian authorities for one additional year. Importantly, that extension was one of the last remaining conditions required for Aminex to complete a farm-out transaction with ARA Petroleum.
READ: Ntorya project set to advance as Tanzania extends licence
Together the partners will advance Ruvuma’s Ntorya discovery towards development with a programme of work including at least on one well.
“This farm-out, long in the making, continues to excite the board for what it can deliver to the company,” Bell said in Thursday’s statement.
“As previously described, once completed, the farm-out should see the company fully carried to material levels of production and revenue without the need to return to shareholders for any additional funding for Ruvuma.
“While we continued to experience delays to this game-changing project, the board was conscious in the intervening period to use time wisely,” he added.
He highlighted that prior to COVID-19, the company had reduced corporate overheads, including G&A costs, and, had created efficiencies in the business so that it is robust and derisked.
Bell, meanwhile, cautioned that it is possible that the most recent COVID-19 related impacts particularly related to oil consumption and crude prices, may necessitate a further round of cost-cutting and consolidation whilst Aminex continues to await receipt of Tanzanian government consents.
In terms of financial results, Aminex reported a US$15.2mln loss for the year including a US$12.3mln non-cash impairment.