Beleaguered penny stock LionGold's Q2 loss narrows to $14.4 million

LionGold reported on Friday that its loss stood at $14.4 million, compared with a $44.9 million loss in the same period a year ago -- PHOTO: ST FILE
LionGold reported on Friday that its loss stood at $14.4 million, compared with a $44.9 million loss in the same period a year ago -- PHOTO: ST FILE

SINGAPORE - Gold miner LionGold, one of the firms involved in last year's October dramatic penny stock crash, saw losses narrow for the second quarter ended Sept 30.

It reported on Friday that its loss stood at $14.4 million, compared with a $44.9 million loss in the same period a year ago.

Revenue from its continuing operations fell 22.9 per cent to $18.5 million, as the firm suffered from lower sales and a drop in the average selling price of gold.

Losses for the six months totalled $34.7 million, better than the $41.1 million red ink logged in the same period a year ago.

Loss per share came in at 3.25 cents as of Sep 30, lower than the 4.45 cent loss per share in the same period a year ago. Net asset value per share stood at 5.47 cents at the end of September, down from 9.29 cents at the end of March.

The firm has been hampered by high costs of production and depressed share prices in a challenging fundraising environment.

It is also under investigation by authorities on suspected trading irregularities, along with penny stocks Asiasons Capital and Blumont Group.

The three stocks rose spectacularly by between 40 and 160 per cent in August and September last year, before it plunged by between 91 and 96 per cent in a matter of days in October.

Difficult conditions in the gold market could prompt LionGold to change its core business. It said in a statement: "However, should gold prices and operating costs reach a sustaining level where gold mining becomes unprofitable, the company may decide to diversify into other minerals or businesses."

LionGold said it has not been given further details of the investigations by the Commercial Affairs Department.