Connemara Mining losses up nearly 30%By Geoff Percival - Wednesday, June 20, 2012
Mineral exploration firm Connemara Mining has reported a pre-tax loss of €397,121 for 2011; up by nearly €100,000 on the previous year, but has delivered an upbeat medium- term outlook.
The Dublin-based zinc explorer — which has its shares listed on London’s AIM market — did, however, see its loss per share fall from 1.71c to 1.59c.
Pre-tax losses, in 2010, amounted to €299,594. The latest figures show that the company’s operating losses grew from €301,754 to €399,708.
Connemara has a number of zinc licences in Meath, Cavan and Tipperary, as well as the Limerick-based Stonepark asset; and a highly-rated gold prospect straddling Wicklow and Wexford.
The company said it has "adequate funds" to cover all proposed expenditure for this year.
It also said that while supply is not meeting demand for zinc and lead, "good future prices" are expected.
"Base metal prices are very volatile — a trend likely to continue in an unstable world, but, overall, the price trend is likely to be upward.
"We believe the long- term fundamentals for zinc and gold are very strong. The current extreme uncertainty in the world is having a devastating impact on market values.
"There’s no way of knowing when the bear market in resource stocks will finish, but finish it will. When it does, I believe we are very well placed to benefit from the upturn," Connemara chairman John Teeling said.
"Zinc isn’t the most fashionable of products, but it is a key element in the billions of products going to be bought in Asia, Africa and South America. Connemara is well placed in the most prospective country in the world in which to find zinc," he added.
Mr Teeling also labelled Connemara’s gold exploration project "exciting", adding that management has "strong hopes" that it will move to drilling new areas in Wicklow and Wexford.