Capital Metals PLC on Friday achieved a narrowed annual loss during what it labelled as an ‘extremely challenging year’.
The London-based, Sri Lanka-focused mineral sands mining company said its pretax loss in the year that ended on March 31 narrowed 41% to $1.1 million from $1.9 million a year prior. The company generated no revenue, unchanged from a year ago.
The committee on Public Enterprises in Sri Lanka in June appointed an independent legal officer to investigate potential misappropriation within the Geological Survey & Mines Bureau. Media reports had suggested some mining licences may have been awarded in an illegal manner.
In December, the Board of Investment of Sri Lanka started to carry out an investigation regarding the ownership structure of Capital Metals’s subsidiary Damsila Exports Pvt Ltd, after the Geological Survey & Mines Bureau gave notice to Damsila that they consider it necessary for the subsidiary’s shareholding structure to have been approved by the BOI.
Looking ahead, the company said it was confident that licences in Sri Lanka, which have been suspended since December 2022 due to the ongoing investigations, will be reinstated but that there can be no guarantee.
Capital Metals shares fell 4.8% to 1.00 pence each on Friday morning in London.
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