Minmet targets AIM listing as losses hit €2.5m

MINING and exploration company Minmet promised shareholders a London listing yesterday as it reported pre-tax losses of $3 million (€2.5 million) for the six months to June.

The losses rose from $2.4m (€1.99m) in the same period last year as revenues slipped 17% to $4.3m (€3.5m).

The company blamed its Bjorkdal gold mining project in Sweden for the results. It suspended its mining operations in the region earlier this year after experiencing “unsustainable” losses.

Chairman Mike Neville said the first half of the year had seen “significant changes” in the business but that the Bjorkdal project was now operating at break-even point. Mr Neville also said the company would embark on a new strategy to focus on oil, gas and mineral exploration work.

“I believe this new focus for the group, coupled with the improving cash position, will position the business extremely positively for the future, especially in areas which are consolidating quickly,” he said.

The company will also proceed with plans to seek a new listing on London’s Alternative Investment Market (AIM). Mr Neville said new EU rules on share trading meant shareholders lost the ability to trade Minmet shares through the London Stock Exchange and were instead confined to Dublin.

“It is regrettable that this has caused significant inconvenience to many Minmet shareholders,” said Mr Neville. “The loss of this trading platform has made the completion of the AIM admission more urgent and this process is being pursued with all haste, and is the primary focus for the board.”

The company shifted its listing from the now-defunct Exploration Securities Market (ESM) to the new Irish Enterprise Exchange (IEX) earlier this year.

The company also said yesterday it would not proceed with a prospective takeover of South African gold exploration company Centurion. It recently entered into a preliminary agreement, not legally binding, with Centurion but said it was no longer happy to go ahead on the terms proposed. Talks between both parties are still ongoing, however. “A further announcement will be made in due course on this matter,” Minmet said.