Equity issue boosts Oracle Coalfields' books

Oracle Coalfields has reported a wider loss, but increased its cash position.

The mining company issued its first half results to 30 June on Thursday.

It reported an operational loss after tax of £0.528m, broader than the previous year’s loss of £0.377m.

However the AIM-listed company had cash and cash equivalents of £1.469m, up from £0.127m in 2014 due to an equity issue in February.

The group raised £3.369m to provide working capital funding for its lignite coal mine and mine mouth power plant located in the Thar desert in Pakistan.

It will be Pakistan's first large scale coal mining and power plant project in the private sector

Oracle Coalfields chief executive Shahrukh Khan said the power shortage in Pakistan is still severe.

“The Government continues to support the Company in the development of the coal mine and power project.

"In preparation for financial closure, we are currently finalising details of the Engineering Procurement and Construction contracts with our Chinese partners for both the mine and the power plant, and also debt financing supported by Sinosure the state-owned China Export and Credit Insurance Corporation.”