Hargreaves Lansdown

Net losses widen for Lexington Gold

Tue 11 May 2021 16:31 | A A A

No recommendation

No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

(Sharecast News) - Carolinas-focussed gold exploration and development company Lexington Gold reported a net loss from continuing operations of $0.7m (£0.49m) in its final results on Tuesday, against its prior-year loss of $0.5m.

The AIM-traded firm said total assets were $5.5m at year-end on 31 December, up from $0.4m a year earlier, while its net cash position improved to $2.9m from $0.01m.

Total liabilities stood at $0.09m at the end of 2020, narrowing from $0.36m at the end of 2019.

Lexington Gold's board described 2020 as a "transformational year" for the company, in which it completed the acquisition of majority interests in four gold exploration projects in North and South Carolina and was readmitted to trading on AIM in November.

In conjunction with readmission, the company completed a £3.33m fundraising, a rebranding and name change, the restructuring of its share capital through a one-for-10 share consolidation, and the appointment of a "highly experienced" board.

It began exploration activities on its Carolina gold projects immediately following readmission, which continued post-year end.

On 25 November, the company completed its acquisition of Global Asset Resources (GAR) which, via its wholly-owned US subsidiary, holds a 51% interest in and operationship of four gold exploration projects in the US states of North and South Carolina.

The acquisition constituted a reverse takeover under the AIM rules.

"In line with the company's stated strategy, the directors believe that the acquisition of GAR represents an excellent opportunity to create long-term shareholder value through the identification and exploration of gold deposits within a well-mineralised but under-explored Super Terrane in North and South Carolina in the United States," the board said of the company's outlook.

At 1322 BST, shares in Lexington Gold were up 3.84% at 3.89p.

    The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.

    More AIM news from ShareCast

    No results were found