Exploration company African Eagle posted an operating loss of £612,404 for the first six months of 2009, but predicted a better outlook for the year.
The firm had cash resources of more than £1.5 million as of June 30th 2009, it said. African Eagle also raised £3.37 million partly due to an open offer to shareholders in August, which will be used to make a start on work leading to a feasibility study on its Dutwa nickel laterite project in Tanzania and for general working capital.
In a statement, chairman John Park said iAfrican Eagle's decision to concentrate its efforts on Dutwa, taken after a comprehensive strategic review of its operations, had paid off. However, the firm said further cost reductions and optimisation of revenue would improve its bottom line further, and has already begun work on a feasibility study.
"Initial focus will be directed towards investigating ways to reduce costs, especially transport costs, and increase revenues," Mr Park said in his statement.
Testwork and surveys carried out this year have indicated that the Dutwa is "likely to be a highly profitable operation", the company said.
"Our farm-in agreement over the adjacent Ngasamo deposit, signed in April, should add at least 50 per cent to the project resource," it said.
The company said it plans to drill the Ngasamo deposit, and additional metallurgical test work had already commenced.
African Eagle said exploration on other projects had been limited to a VTEM helicopter electromagnetic survey to search for "blind" copper zones at Mkushi, as part of a co-funded venture with CGA Mining.
"We also announced, in May, an in-house deposit model showing potential for in excess of 700,000 ounces at Igurubi, based on interpretation of existing data on our most advanced gold and copper projects," the company said.
"The board is reviewing all alternatives with regard to these projects including the outright sale, joint venture and other possible corporate initiatives. The clear strategy is to realise value for the Company and its shareholders from what are some very attractive properties."