Capital Metals loss widens as expenses rise for Taprobane development
Capital Metals PLC on Thursday reported a widened interim loss as administrative expenses and share based payments surged, while it advanced its Taprobane mine.
The London-based mining firm targeting mineral sand deposits in Sri Lanka said pretax loss widened to $1.1 million for the six months ended September 30 from $446,781 a year ago.
Weakening the bottom line, administrative expenses rose 58% to $717,293 from $454,492, while share based payments surged to $403,425 from $4,631 a year ago.
Capital Metals said the loss for the period increased largely due to a ‘significant’ accounting charge from the issuance of Silver Pine Pacific Ltd share options in September, as well as higher expenses driven by increased activity levels, such as travel expenses and fundraising initiatives.
The company made no revenue, the same as the year before, as it advances its Taprobane minerals project.
Capital Metals said it intends to be cash flow generative by early 2027. This is contingent on all studies being completed with project approvals and funding in place in order to commence construction in the first quarter of 2026
‘From the exceptional results of the phase 1 aircore drilling programme and the subsequent mineral resource estimate upgrade, to the advancement of engineering, regulatory, and commercial workstreams, we have continued to improve the foundations for project development,’ said Executive Chair Greg Martyr.
‘With a strengthened board, including prominent Sri Lankans, growing local engagement, and an expanding social licence to operate, Capital Metals is firmly positioned to deliver a long-life, high-grade mineral sands operation that will create meaningful value for shareholders, local communities, and Sri Lanka.’
Shares in Capital Metals fell 1.6% to 4.33 pence on Thursday afternoon in London.
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