African Eagle, a penny stock that has paid off in spades for those who took a chance on it, saw its loss before tax contract in 2010, largely as a result of a lower impairment charge relating to deferred exploration expenditure.

The early stage nickel miner's loss before tax subsided to £1.03m in 2010 from £1.19m the year before, as impairment charges declined to £0.06m from £0.22m in 2009.

Cash and cash equivalents at the end of the year stood at £3.17m, down from £3.29m at the end of 2010.

Mark Parker, who founded the company, is giving up the role of managing director in recognition that his skills are best suited to the exploration phase of the company's development. Consequently, the board has begun a search for a new chief executive officer.

Parker will stay on the board as a director but will focus his efforts on business development and identifying other regional nickel targets.

The company said it is well into the pre-feasibility study of its Dutwa nickel project, which it expects to complete by the end of the third quarter of this year, before moving onto a bankable feasibility study.

African Eagle is getting shot of its non-core assets to focus on the Dutwa project as it makes the transition from explorer to producer, but said progress on selling its copper portfolio in Zambia has been slower than anticipated, because the board has not been prepared to split this asset and give it away cheaply.

In the belief that the portfolio has greatest value if kept as a single entity, the board intends to float its copper business later this year, under the leadership of Chris Davies, its operations director.

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