LionGold loses S$6.3m

Outstanding borrowings have been reduced though.

LionGold Corp Ltd reported that for the six months ending 30 September 2012, gross profit of $10.1 million was achieved on a 39% increase in turnover to S$55.8 million. The boost was due to the consolidation of a recently acquired gold mining subsidiary.

The company said net loss for the period was S$6.3 million, largely unchanged from one year ago.

LionGold said non-cash items collectively totalling S$5.9 million included unrealised foreign exchange losses, the amortisation of the convertible bonds due in 2015, and the reduction in the bonds’ “fair value” as calculated for equity conversion.

Meanwhile capital raisings and acquisitions in the period have seen a dramatic change, with net assets up more than six-fold to S$187.4 million.

Cash and equivalents for the end of the financial reporting period increased substantially to S$46.4 million. Outstanding borrowings, on the other hand, have been reduced from S$30.8 million to S$18.2 million following a US$23 million convertible bond issue in May 2012.

For the second half of the current financial year ending 31 March 2013, the results of wholly-owned subsidiaries Castlemaine and Brimstone will be fully consolidated into the Group’s accounts.