Navan Mining losses increase

In the first half of this year, ISEQ-listed Navan Mining incurred a loss after taxation of $7.9m (€8m) compared to a loss of $6.6m (€6.5m) for the first half of 2001, an increase of 20%.

Sales revenue for the period was $6.1m (€6m), 0.7% above the comparable revenue for 2001 of $6m (€5.9m).

Operating costs for the six months to 30 June 2002 were 35pc below those of the first half of 2001 reflecting the suspension of operations in Spain.

The operating loss for the period of $4.7m (€4.6m) compares to $6.1m (€6m) for the first half of 2001, not including $1.4m (€1.3m) of exceptional costs relating to the care and maintenance of the Spanish operations and the restructuring of the group's debts.

It was necessary for the exploration company to reallocate some $2.5m (€2.4m)as result of holding costs in Spain being in excess of previous allowances and to settle with a number of previously unidentified creditors.

These factors, and less than anticipated production at Chelopech, placed a strain on the company's cash resources.

Despite the financial constraints under which the company operates, management is optimistic that it can attract the capital required to move the company forward.

A resource estimate for the Ada Tepe deposit will be available, which will enable the company to properly evaluate its potential.

This will be a key pointer for indicating the way forward for the group.