Rainbow Rare Earths losses deepen after output disruptions, asset writedown
Source - SMW
Rainbow Rare Earths booked a deeper annual loss after it experienced output disruptions and wrote down the value of its assets.
Pre-tax losses for the year through June amounted to $12.1m, compared to losses of $2.5m on-year, and included a $3.1m impairment charge.
Revenue rose to $1.5m, up from $1.0m, but was more than offset at an operating level by production costs.
Chief executive George Bennett said the company had a 'tough' year.
'However, while production was challenging, it would be more correct to characterise our operating methods in the year as trial mining,' he said.
'We have been able to learn a lot about our project in the year, and are now adapting the way we operate, and while we will continue the trial mining at Gakara, we are moving to a more mechanised, efficient operation.'
At 9:08am: (LON:RBW) Rainbow Rare Earths Ltd share price was -0.2p at 2.75p