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Orion Minerals posts US$2.4m loss

Tuesday 14th September 2010 1 Comment

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Orion Minerals Group, the NZAX-listed company formed from a shell to invest in mining in South America, posted a wider full-year loss after ceding its interest in a Chilean iron ore prospect.

The net loss was US$2.4 million, or 28 cents a share, from a loss of US$1.4 million, or 16 cents a year earlier, Orion said in a statement to the NZX today. With zero revenue and payments to suppliers and workers of about $2 million, the company is relying on its $7.8 million of cash reserves.

Shares of Orion haven't traded since Feb. 25, when they changed hands at 2 cents, valuing the company at $8.3 million. The company started life as RLV No. 3 (for reverse listing vehicle), which acquired Chilean iron ore miner Minera Varry S.A for US$13.5 million of cash and the issue of shares and options.

Minera Varry held the Mina Javiera iron ore prospects which were later found to be uneconomic and Orion subsequently divested the holding, taking a net loss of US$1.2 million. Another prospect, the Resguardo concession, was also deemed uneconomic.

Last November, Orion issued 25 million shares to Fengli Group, a Chinese steel processing and distribution company, as part of an agreement when Minera Varry's prospects missed expectations.

Orion said it has a management team based in Santiago, Chile, assessing iron ore prospects.

"The company is considering all mineral exploration opportunities including gold, copper and silver mineralisation," it said.

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Comments from our readers

On 15 September 2010 at 3:37 pm michael said:
Not at all surprised this company has got Ken Wikeley written all over it.
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