Oracle Power's losses shrink but more funding required
Oracle Power on Tuesday reported a narrowed full-year loss after clamping down on costs, though admitted that it will require more funding when it exhausts a new short-term working capital loan facility.
The AIM traded company, which is developing a combined lignite mineral resource and mine mouth power plant in the Thar desert, Pakistan, recorded a loss before tax of £0.9m for 2018, marking an improvement of 16% on the year before.
Boosting its bottom linem Oracle, which has yet to generate any revenue, saw administrative expenses drop by 14% to £0.9m.
The company had cash and cash equivalents of £49,000 at the end of the year and although it secured a short-term working capital loan facility with Brandon Hill Capital Limited for up to £250,000 in May, the energy developer said further funding will be required before the end of 2019.
Equity placings in March 2018 and August 2018 raised £550,000 and £450,000 respectively, while a post-period end placing in February 2019 raised a further £500,000.
Oracle also inked a non-binding memorandum of understanding with two Chinese power companies to develop and operate the Pakistani mine and power plant and for financing.
Post period end, the company's focus has been on formalising detailed agreements with its Chinese partners, some pre-development work to finalise detailed technical work programmes and moving to fulfil requirements for permissions, licences and other approvals that need to be obtained from the relevant Pakistani Government bodies.
Oracle Power's shares were down 0.06% at 0.33p at 1242 BST.