LionGold Corp issues profit warning

LionGold Corp warned that it expects to post a loss for the year ended March 31. -- ST PHOTO: DESMOND FOO
LionGold Corp warned that it expects to post a loss for the year ended March 31. -- ST PHOTO: DESMOND FOO

SINGAPORE - LionGold Corp warned that it expects to post a loss for the year ended March 31.

Based on a preliminary review of the group's performance, the loss is mainly attributable to:

* Care and maintenance costs from operations in Bolivia and Ghana;

* Substantial losses arising from the unrealised loss on financial assets at fair value through profit and loss; and

* Substantial losses arising from impairment loss on goodwill and exploration and evaluation expenditure.

LionGold said it is in the process of finalising its results.

LionGold is one of several companies that have been asked by the Commercial Affairs Department to provide more data, including accounting records, meeting minutes, resolutions and other documents as part of a sweeping investigation into trading irregularities that culminated in the penny stock crash last October.

Documents on LionGold's proposed acquisition of Minera IRL, along with accounting records from April 1, 2010, to March 31 this year were also sought.

Both companies have since agreed to abort negotiations due to volatility in LionGold's share price.