Critical Metals PLC said it ‘transformed’ from explorer to copper producer in its latest financial year, with a widened loss caused by surging exploration and administrative costs.

The Africa-focused mining investor reported a £2.7 million pretax loss for the year ended June 30, compared with its £661,743 loss the year before. It currently generates no revenue.

During the year, Critical Minerals increased its indirect holding in the Molulu project near Lubumbashi, in the Democratic Republic of the Congo, to 70% from 40%. Activities throughout the period included copper ore pre-production, ‘detailed geophysics studies and ground surveys’, and road rehabilitation.

‘During the year under review, the group has been transformed from an explorer into the next copper producer in the [DRC],’ commented Chief Executive Officer Russell Fryer, who insisted the board ‘has worked tirelessly’ to create shareholder value.

‘The team on the ground have been working to increase production from the original forecast of 10,000 tonnes of copper oxide per month,’ he added.

Total expenditure soared to £2.7 million from £663,858. Exploration & evaluation expenses increased to £139,274 from nothing the prior year, while administrative expenses surged to £2.5 million from £461,264.

Critical Minerals said its cash balance at June 30 was £411,696, down from £824,251 at the same time in 2022.

Fryer commented: ‘Looking forward to the coming year, I am greatly encouraged by the work we have done...I remain confident in the economic viability of Molulu, driven by strong fundamentals and increased demand for copper.

‘In line with the group’s strategy, we will continue to assess further acquisition opportunities when they arise whilst expanding operations at Molulu. I look forward to the next twelve months with extreme optimism,’ he continued.

Critical Metals shares are currently suspended at 17.00 pence in London. They last traded for 17.30p on Tuesday.

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