Latin Resources Ltd (ASX:LRS) (FRA:XL5) has recorded an after-tax profit of $3.5 million for 2020, an impressive 257% turnaround on the $5.5 million loss suffered in 2019.
The company also boosted its net assets to $11 million, a 1,592% improvement on 2019, and cash reserves of $4.5 million, compared with just $733,282 at the end of 2019.
Latin Resources undertook a year of “revitalisation” in 2020, advancing exploration at its priority Yarara Gold Project in the proven Lachlan Fold Belt of New South Wales and its Noombenberry Halloysite-Kaolin Project in WA, as well as monetising its projects in South America.
Looking ahead
Latin Resources executive director Chris Gale said investors could look forward to positive newsflow in 2021.
“We are now debt-free and in a very healthy financial position and we look forward to progressing our projects in 2021 to the next level of development,” he said.
“In 2021 we intend to continue to progress our mineral projects in Argentina and Peru via joint venture arrangements or via the sale of our interests in the projects while continuing to focus on further exploration for our Australian projects and continue to look for other opportunities that will create value for our shareholders.”
Australian projects
Latin has two gold exploration projects it is focusing on in Australia, the Yarara Gold Project 70 kilometres east of Albury and the Burdett Gold Project in close proximately to the Cadia mine in New South Wales.
It also is developing the Noombenberry Halloysite Project, 300 kilometres east of Perth in Western Australia, which is prospective for kaolinite and halloysite, both of which find heavy use in the production of everyday products like paper, ceramics and more recently carbon capture and hydrogen storage applications.
Just last month, Latin returned the thickest high-grade halloysite and ultra-bright-white kaolin intersection to date from its Noombenberry Project.
“These latest results are from an area where our geologists logged and reported a very thick zone of kaolinitic saprolite development and have confirmed we have encountered very-high quality kaolinite and strong halloysite nano-tube development,” Gale said.
The company is looking to deliver a maiden resource estimate at Noombenberry in the current quarter.
South America
The company has several projects in South America, including the Catamarca Lithium Project in Argentina, the Ilo Sur Copper Project in Peru and the Brazil Lithium Pegmatite Project.
Latin has also recently gained exposure to the copper-rich Atacama region in Chile with Canadian affiliate Westminster Resources Ltd (CVE:WMR) entering into an agreement to acquire a 100% interest in the 16-square kilometre Mostazal copper property.
Extensive exploration is imminent at the Salinas Lithium Project held by 100%-owned Brazilian subsidiary, Mineracao Ferro Nordeste, in the Jequitinhonha Valley region of Minas Gerais, a lithium-rich but underexplored region.
The company’s multi-element strategy has also been rubber-stamped by Latin’s directors, two of whom recently exercised a combined total of 16,826,848 options to acquire 16,826,848 fully paid ordinary shares for a total consideration of $201,922.
- Daniel Paproth