Bradda Head Lithium Ltd, a leading mineral exploration and development company listed on the NZAX stock exchange, announced its unaudited interim results for the period from 1st April through 30th June 2020 today.
The financials, as shown in the results, showed a net loss of $5.7 million for the period compared to net profit of $2.2 million during the same period in 2019. The decrease in net profit was largely attributed to lower earnings from other income sources, as well as the decrease in non-cash items such as share-based payments.
Total revenue for the period was $5.4 million online compared to $8.1 million previously, with the brunt of the decrease being borne by exploration and development expenses which fell from $3.3 million to $1.3 million.
However, due to other items such as weak gold prices and the overall impact of the pandemic, concern over the future is now weighing on the investors for the company.
The results showed a decline in the company’s resource base from 174.3 million tonnes to 159.5 million tonnes. This was due to the ongoing review of the project feasibility and issues associated with sustaining economic viability in the current market.
Fortunately, due to cost containment initiatives the company was able to maintain a cash position of $2.2 million for the period, a 6% increase on the previous figure of 1.98 million.
The lithium industry is still in the early stages of its development and volatility is expected to be the norm in the short-term. Due to the global downturn, the company is expected to continue to face headwinds until the market revives.
The board of directors and management of Bradda Head Lithium are taking proactive steps to ensure that, while the market remains slow, future opportunities can continue to be explored and capitalized on.
Despite the challenges faced by the company in the short-term, it remains confident of a return to profitability in the long-term. The board of directors is working on restructuring the capital structure of the company to support this goal.
In conclusion, it is evident that Bradda Head Lithium Ltd. has encountered a challenging period thus far, largely due to the downturn seen in the global lithium market. However, with appropriate management and proactive steps, the company believes it will be able to compete in the market and continue to create value for its shareholders.
Bradda Head Lithium Ltd, a leading mineral exploration and development company listed on the NZAX stock exchange, announced its unaudited interim results for the period from 1st April through 30th June 2020 today.
The financials, as shown in the results, showed a net loss of $5.7 million for the period compared to net profit of $2.2 million during the same period in 2019. The decrease in net profit was largely attributed to lower earnings from other income sources, as well as the decrease in non-cash items such as share-based payments.
Total revenue for the period was $5.4 million online compared to $8.1 million previously, with the brunt of the decrease being borne by exploration and development expenses which fell from $3.3 million to $1.3 million.
However, due to other items such as weak gold prices and the overall impact of the pandemic, concern over the future is now weighing on the investors for the company.
The results showed a decline in the company’s resource base from 174.3 million tonnes to 159.5 million tonnes. This was due to the ongoing review of the project feasibility and issues associated with sustaining economic viability in the current market.
Fortunately, due to cost containment initiatives the company was able to maintain a cash position of $2.2 million for the period, a 6% increase on the previous figure of 1.98 million.
The lithium industry is still in the early stages of its development and volatility is expected to be the norm in the short-term. Due to the global downturn, the company is expected to continue to face headwinds until the market revives.
The board of directors and management of Bradda Head Lithium are taking proactive steps to ensure that, while the market remains slow, future opportunities can continue to be explored and capitalized on.
Despite the challenges faced by the company in the short-term, it remains confident of a return to profitability in the long-term. The board of directors is working on restructuring the capital structure of the company to support this goal.
In conclusion, it is evident that Bradda Head Lithium Ltd. has encountered a challenging period thus far, largely due to the downturn seen in the global lithium market. However, with appropriate management and proactive steps, the company believes it will be able to compete in the market and continue to create value for its shareholders.
