Lexington losses narrow as exploration investment rises
Carolinas-focussed explorer and developer Lexington Gold reported a first-half net loss from continuing operations of $0.37m on Wednesday, narrowing from $0.47m year-on-year.
The AIM-traded firm said it increased its investment in exploration to $0.61m in the six months ended 30 June, from $0.43m a year earlier, while it reduced its operating expenses to $0.36m from $0.47m.
Total assets were $4.78m at the half-year end, compared to $4.76m at the end of December, while its cash position fell to $0.37m from $0.95m over the same period.
Liabilities totalled $0.44m as at 30 June, compared to $0.11m on 31 December, of which $0.41m related to the unsecured convertible loan of £0.34m repayable by 30 April 2023 if not converted.
“The first half of 2022 has been a productive period for the company, with encouraging exploration results announced for two of the company's gold projects in North and South Carolina, United States, a region which has seen historical production and multi-million-ounce mines,” the board said in its statement.
“Lexington Gold remains focused on highly prospective exploration and development work with the objective of proving up a significant resources base.
“The company has increased its investment in exploration activities whilst keeping overhead costs low.”
Lexington said exploration results for the period were “encouraging”, with estimated resources at one of its four projects - Jones-Keystone-Loflin - increasing 27% since the period end to around 83,000 ounces of contained gold.
“Global macroeconomic uncertainty, especially in light of the ongoing war in Ukraine and rising inflation, creates a climate that has in the past often supported gold prices.
“Such an environment also serves to highlight the benefits of operating in a stable political and regulatory region, such as the US.”
At 1557 BST, shares in Lexington Gold were up 1.25% at 3.8p.
Reporting by Josh White at Sharecast.com.