Mineral exploration and development company Beowulf Mining posted its unaudited preliminary financial results for the three months ended 31 March on Tuesday, reporting a loss before and after taxation attributable to the owners of the parent of £0.2m , narrowing from a loss of £0.21m year-on-year.
The AIM-traded firm said the loss was lower due to a decrease in director's remuneration, attributable to a lower director's consultancy cost, combined with a reversal of an accrual for professional fees.
Basic and diluted losses per share were 0.04p, in line with last year, while £1.09m cash was held at period end.
The translation reserve losses attributable to the owners of the parent increased from £0.4m at 31 December to £0.83m at 31 March.
Beowulf said much of the company's exploration costs were in Swedish krona, which had weakened against sterling by around 6% since the end of 2017.
"We have had a busy first five months of the year, culminating in a successful £1.5 fundraising," said chief executive Kurt Budge.
"A strong cash position gives the company the flexibility to execute its plans at Aitolampi, at our other graphite prospects, at Åtvidaberg, and wait on the government as it completes its review of the company's Kallak application."
Budge said that as well as the recent fundraising, the company received a 0.16m grant from Business Finland for its graphite programme, and under the 'Horizon 2020' framework for research and innovation could receive a further 0.28m for testing passive seismic technology at Kallak and its Parkijaure licences, with one objective being to identify an exploration target for iron ore mineralisation at Parkijaure.
"We support the government's thorough review of the Kallak application, its need to take time to understand the facts, acknowledging the company's SEK 77m investment, and recognise the CAB's misrepresentation of the project, flawed analysis and conclusions, and the damage being caused to Sweden's reputation as a mining country and a place to do business," Budge added.
"Beowulf shareholders have good reason to be frustrated with no definitive timeline for a decision, but should continue to be patient, as Kallak is an important project for Jokkmokk and Norrbotten and should be treated with the care and attention it deserves."
Budge also explained that the company maintained a dialogue with the government, and in early July, he would again attend Almedalen.
"Almedalen presents an opportunity to engage with politicians from all parties, who take seriously the economic future of northern Sweden, the interdependencies of major capital projects in the region, mining, rail, port, and power, encouraging investors and job creation, that in turn sustain the financial health of municipalities.
"I look forward to keeping shareholders updated on our progress across all areas of our business."