Sunkar H1 loss narrows 23.9%

Aug 18. Business Financial Newswire

Sunkar H1 loss narrows 23.9%Kazakhstan phosphate miner Sunkar Resources reported a first-half loss of $5.45m, down from the previous $7.12m, mainly as a result of lower foreign exchange losses.

Administrative expenses for the six months to June fell to $4.63m from $4.73m, while forex losses were $0.76m against the previous $2.50m.

During the period, Sunkar received Kazakh government consent to change its work programme commitments under its Subsoil Use Contract to develop the Chilisai phosphate deposit.

It said the SUC changes will align mining development with future fertilizer production and mean ore extraction commitments in 2010-2012 of 1m tonnes per annum, with cumulative development expenditure commitments extended from 2014 to 2020.

The company said its resource estimate, covering 40% of the overall licence area, was more than sufficient to meet the first 20 years of fertilizer production.

Preliminary results of a Bankable Feasibility Study were due in the second half-year, with final results in the first half of 2011.

Discussions on supply and off-take agreements continued. Mining was on course to complete 1m tonnes extraction in 2010

The company was well financed to meet its immediate needs, with cash at $7.5m at June 30 and an equity line facility of ?10m in place.

Charirman Teck Soon Kong said the long-term outlook for the phosphates sector remained positive and world prices began to increase in the second half.