East Star Resources PLC on Tuesday said its annual loss widened, due to a non-cash charge that has given it an ‘uniquely exciting portfolio’.
The London-based Kazakhstan-focused gold and copper exploration and development company said its pretax loss widened to £3.1 million in 2022 from £86,000 in 2021. The results cover 13 months, as East Star moved its financial year-end to December 31 from November 30.
East Star said the loss included a £1.7 million non-cash expense for its reverse acquisition of Discovery Ventures Kazakhstan Ltd. This comes as East Star re-listed as a Kazakhstan-focused minerals explorer in January of last year, following the completion of the DKV deal, as part of which East Star raised £3.1 million.
East Star booked no revenue in 2022, unchanged from 2021.
Looking ahead, following the reverse takeover of DKV, East Star said it has a strong balance sheet position and has ‘adequate resources to continue in operational existence for the foreseeable future’.
East Star said it will begin drilling in the copper-zinc-lead Verkhuba deposit in the summer and intends to test priority helicopter-borne electromagnetic targets, which could become additional copper deposits adjacent to Verkhuba.
The company noted that it is awaiting results from its leach test in its rare earths project in East Kostanay, following recent reverse circulation drilling, to examine the recoverability potential of valuable elements before moving into resource drilling. It will also focus on further exploration in the Chu-Ili gold belt.
Non-Executive Chair Sandy Barblett said: ‘We believe Kazakhstan has the mineral wealth and political will to become a major supplier of critical and strategic minerals. East Star’s first mover advantage is now evident in the portfolio, with the company positioned as the listed brownfield resource definition vehicle through which to access the next wave of mineral discoveries in Kazakhstan.’
Shares in East Star were down 1.4% to 2.98 pence each in London on Tuesday afternoon.
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