South Crofty expenditure leads to loss reported by Cornish Metals
TIN exploration company Cornish Metals has swung to a loss of 4.1 million Canadian dollars (£2.3m) for the six months to the end of June, writes
In a set of unaudited results, the Vancouver-headquartered firm reported total operating expenses of $4.5m – up from $2m the previous year.
The business, which is working to revive production at Cornwall’s historic South Crofty mine, said the rise in costs was due to higher travel and marketing expenditure, and a termination settlement for its former chief executive, who left the business in March.
At the end of the period, cash in the bank had decreased by $20m to $6m as a result of “development activities” in Cornwall.
Ken Armstrong, interim chief executive and director of Cornish Metals, said: “Momentum and activity levels have remained high since the start of the year as the Cornish Metals team continues to progress work plans and accomplish key milestones, particularly the completion of the preliminary economic assessment of the South Crofty tin project that confirms the project’s potential to be a low-cost and longlife tin mining operation.
“The sale of the company’s assets in northern Canada provides nearterm liquidity and demonstrates our priority and focus on advancing South Crofty towards commencement of production in 2027,” he said.
According to an economic report by Cornish Metals, South Crofty has the potential for average annual tin production of more than 4,700 tonnes for years two through to six, totalling 49,310 tonnes over the 14-year life of the mine.
The assessment predicts total after-tax cash flow of approximately US $626m from start of production.
Cornish Metals started the second phase of shaft refurbishment at its South Crofty mine project in July. The company sold the royalty interests in a Canadian mining project earlier this month so it could focus on its project in the UK.
Last week, the AIM-listed firm appointed mining executive Don
Turvey as its new chief executive. He will move from South Africa to take up the role at the beginning of September.
Last Thursday, Cornish Metals said it had allocated funding for near-term opportunities to progress the South Crofty project, including buying the land next to the surface infrastructure. The firm has said extra financing would be needed before the end of 2024.
Cornish Metals said it expected to finish dewatering the Cornwall mine and complete the shaft refurbishment works by September next year. It plans to start early project works, including initial construction of the groundworks for the processing plant, by December 2025.