Arc Minerals Ltd on Monday said it continued to make a loss in 2022, which was ‘dominated’ by ongoing negotiations over a joint venture with Anglo American PLC, but said the industry outlook was positive despite a volatile economic environment.

The Africa-focused base metals exploration company with projects in Zambia and Botswana said its pretax loss was £5.8 million in 2022, widened from £5.4 million the previous year. However, its operating loss narrowed to £3.7 million from £5.4 million.

Arc Minerals also incurred a one-off £2.2 million loss on disposal of its 66% stake in Zamsort Ltd, which it gave up to settle a legal dispute surrounding a debt claim made against Zamsort.

Arc Minerals, meanwhile, said it is currently reorganising licences in preparation for a planned joint venture with a subsidiary of Anglo American, concerning its copper interests in the north-west of Zambia.

Under the terms of the JV, which was announced in late April, Anglo American has the right to retain a shareholding of up to 70% and worth up to $88.5 million. Anglo American also will make cash payments of up to $14.5 million to Arc Minerals.

Arc Minerals declared no dividend for 2022, unchanged from the previous year.

Going forward, Arc Minerals appeared optimistic, saying that ‘the outlook for copper remains strong’. This is despite economic headwinds such as higher energy prices, the Russian invasion of Ukraine, and higher inflation and interest rates. It said global demand will require the copper supply to significantly surpass current requirements, and that the Zambian government has prioritised additional foreign investment into the mining sector.

Shares in Arc Minerals were down 5.8% at 2.73 pence in London on Monday.

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