Gains for Central African Mining after finals

AIM listed Central African Mining & Exploration Company was in the blue today as the group reported good progress during the full year, although it slipped into a loss for the period.

The exploration, mining, trading and investment firm reported a pre-tax loss for the year to 31 March of £1.13m versus a £2.5m profit in 2005. Turnover was up to £11.04m from £805,000.

Turnover of cobalt by Congo Resources Joint Venture since acquisition in February to the end of August was $82m, or £43.4m, making CAMEC the largest exporter of cobalt in the country.

Group net assets increased eightfold from £15m to £121m, while the firm said it remains on track to produce 8,200 tonnes of cobalt in FY2006-07 with a target turnover of between $150-160m.

CAMEC chairman Phil Edmonds said, “CAMEC has transformed itself over the last six months. We are now a highly cash generative business following our February 2006 acquisition.”

Copper sales from Luita in the DRC have started and the company aims to deliver 10,000 tonnes in FY2006-7 growing to 40,000 tonnes for FY2007-8 with template capacity of 100,000 tonnes by the end of 2008.

It also plans to rapidly accelerate the fluorspar project in South Africa and increase exploration and development spend on its prime coal assets in Mozambique.

In addition, CAMEC wants to prove up resources on its exploration projects to JORC status, with extensive exploration programmes in all its countries of operation being implemented.