Mineral exploration company swings to a loss as operating costs rise

Mineral exploration company Cornish Metals has swung to a loss of CAD$4.1m for the six months to the end of June as operating expenses rose to of $4.5m, up from $2m.

The Canadian-headquartered firm, which is aiming to start production at Cornwall’s historic South Crofty mine in three years time, said the rise in costs was due to higher travel and marketing spend as well as a termination settlement for its former chief executive Richard Williams, who left the business in March.

South African mining executive Don Turvey was announced as Williams’ replacement earlier this month.

Cornish Metals, which has owned the South Crofty tin project since 2016, said that at the end of the period, cash in the bank had decreased by $20m to $6m due to development activities in Cornwall.

Ken Armstrong, interim chief executive and director of Cornish Metals, said: “Momentum and activity levels have remained high since the start of the year as the Cornish Metals team continues to progress work plans and accomplish key milestones, particularly the completion of the preliminary economic assessment of the South Crofty tin project that confirms the project’s potential to be a low-cost and long-life tin mining operation.

“The sale of the company’s assets in northern Canada provides near-term liquidity and demonstrates our priority and focus on advancing South Crofty towards commencement of production in 2027.”