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Wolf reports increased net loss for six months to end December 2016

Wolf Minerals has reported a net loss after tax for the six months to 31 December of A$37.7m, an increase from the A$24.3m loss reported in the corresponding period of 2015. The total loss (including items affected by exchange rate movements) amounted to A$50.6m (2015: loss of A$31.5m).

After revenue from sales of tungsten and tin concentrates of A$10.9m, up 475% from the prior period, the company reported an operating loss of A$34.0m (2015: loss of A$24.2m).

Despite the increased loss, the company reports that the mine recorded improved throughput, recovery and record production in the processing plant. In the second half of the financial year, as mining gradually transitions from the soft ore to the harder granite, the company expects improvements in recoveries and plant throughput. Furthermore, the mine operators and the outside engineering consultants will complete a programme of equipment changes and design modifications in the plant aimed at achieving continuous operation at capacity and enhancement of recoveries in the first half of 2017.

Meanwhile, Wolf reports a number of key achievements during the period at the Drakelands mine, including:

• Planning permission extended from 2021 to 2036.

• Approval for the processing plant to permanently operate 24/7.

• Excellent progress with the establishment of the Lee Moor Road replacement.

• Successful restructure of Senior Debt. Scheduled repayments of principal deferred to January 2018 and tenor of the Senior Debt extended until June 2023.

• Bridge loan for £20m established with Resource Capital Fund VI L.P.

Wolf reports increased net loss for six months to end December 2016 (WLFE)

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