Zanaga Iron Ore Co Ltd booked a loss of US$526,000 in the six months to June 2022. Cash and cash equivalents stood at US$250,000.
During the period, the company continued to work on numerous production scenarios for its Zanaga iron ore project in the Republic of Congo.
Multiple contract operators have been engaged across mining, logistics and processing disciplines with the objective of providing updated cost estimates in-country.
Work on the project is fully financed until well into 2023 thanks to the provision of a US$1.2mln facility provided through a subsidiary of Glencore PLC (LSE:GLEN).
"I am pleased to report that significant work is underway to evaluate options to enable initial small scale production of iron ore from the Republic of Congo, utilising existing infrastructure,” said Clifford Elphick, non-executive chairman of Zanaga.
“The iron ore market has experienced substantial underinvestment by the major iron ore producers over the last decade. This provides an opportunity to demonstrate that smaller scale production can be delivered initially from Republic of Congo, with the upside potential of de-risking the larger scale potential following infrastructure upgrades.”