- Ascot Resources (AOT) has revealed its financial and operational performance for the June quarter of this year
- The company made a net loss of C$1.189 million for the quarter, due to charges related to convertible notes, exchange rate losses and flow-through share premiums
- The company also recently completed a bought financing offer for total proceeds of $25 million
- Despite the net loss, Ascot finished the quarter with $31.197 million in cash and equivalents
- Ascot Resources (AOT) is up 1.9 per cent and is trading at $1.07 per share
Ascot Resources (AOT) has revealed its financial and operational results from this year’s June quarter.
The BC-based junior explorer posted a net loss for the quarter of C$1.189 million and a six-month net loss of $4.673 million. In 2019’s comparative six-month period the company posted a net loss of just $2.610 million.
Ascot put the higher loss down to a number of factors, including a $465,000 charge it incurred from a convertible note, a $551,000 exchange rate loss and a $421,000 loss of flow-through share premiums.
However, the losses were offset by a capital raising that netted the company $25 million during the quarter, issuing just under 30 million new shares at 85 cents per share.
The uncertainty during the quarter led markets to inflate gold stocks, which in turn allowed junior explorers to raise cash through share offerings. As a result, Ascot finished the quarter with working capital of $15.148 million and cash and equivalents of $31.197 million.
Turning to the company’s quarterly operations, Ascot recently completed a feasibility study on its Premier and Red Mountain projects. The company also outlined further drilling programs at those two properties, which began in late June.
President of Ascot Resources Derek White said the funds the company has raised this year have allowed it to continue exploring, while laying the groundwork for the Premier Mill mining operation.
“The Ascot team is working on a number of activities, including advancing the project financing, exploration drilling, the permit amendments and reconstruction engineering,” he said.
Ascot Resources (AOT) is up 1.9 per cent and is trading at $1.07 per share at 11:15 am EDT.