News Column

Amedeo Confident For Future As It Posts Narrowed Loss

June 30, 2014

Hana Stewart-Smith

LONDON (Alliance News) - Amedeo Resources PLC Monday expressed confidence in its future, after it posted a narrowed loss in the year to end-January.

The company posted a pretax loss of GBP969,000, narrowed from GBP1.1 million in the previous year, as it posted revenue of GBP81,000, and it saw lower administrative expenses.

Administrative fees dropped primarily due to a 95% decrease in legal and professional fees, caused by the company's investment in YZJ Offshore Engineering Pte Ltd the year before, and lower director's remuneration.

Following the year-end Amedeo raised GBP5.2 million in a share offering, which it used GBP3.3 million from to fully pay up its stake in YZJ, and GBP1.2 million was used to make a loan to MGR Resources PTE Ltd.

The company took a 46.5% stake in YZJ Offshore Engineering Pte Ltd in July 2012, which has a 40.0% stake in Jiangsu Yangzijiang Offshore Engineering Co. Ltd, with partner Yangzijiang Shipbuilding (Holdings) Pte Ltd.

The company said that progress at YZJ Offshore had been excellent, and the building of its new rig yard is expected to be completed during Autumn of 2014. The yard will provide the company with the capacity to build up to ten offshore rigs, four semi-submersibles and two drill ships at the same time.

Following the year-end the business has won a contract to build drilling platforms potentially worth USD1.7 billion.

Amedeo's second investment was in MGR in April 2013, which is a ferrous metals and ore wholesale and trader. It took a 49% stake in MGR for GBP30,000. The business has been performing well, and Amedeo saw a total of GBP311,000 from MGR during the year. By the year end, MGR was broking around 100,000 tonnes or iron per month, Amedeo said.

The company said that with both of its investments performing well it had confidence in its future. It is discussing new contracts for its current investments, and exploring additional investments in the resource and resource infrastructure and asset sectors.

Shares in Amedeo were trading down 13% at 0.850 pence Monday afternoon.

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Source: Alliance News

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