Kodal Minerals, a mineral exploration and development company, mitigated its full year losses by keeping costs low in its subsidiaries and project investments in Norway and west Africa.
The company reported a loss before tax of £465,622 for the year ended 31 March 2016. For the same period the previous year there was a loss of £3.9m.
In the year ended 31 March 2015 the group was hit by a £3.4m impairment at its Kodal mining project in southern Norway due to a significant fall in iron ore prices. Kodal said capitalised expenditure of the project continued to be impaired in the following year as commodity prices have not recovered to a point which the company sees as "potentially economic".
There was a further impairment charge of £50,426 for exploration and evaluation and equipment which was written off. Net impairment charges increased from £285,000 from £597,000 reflecting additional work on the Grimeli project, also in Norway.
The company also reported a lack of action in progressing with the phosphate and titanomagnetite Kodal project.
"Unfortunately, more than two years after agreeing that the project was of potential benefit and that the group should proceed with development, neither of the two municipalities involved (Larvik and Andebu) has moved the
"There is no explanation for this lack of action nor has any route been identified whereby the group can accelerate the process."
The company is conducting an environmental and social impact assessment of the project but no time frame was provided.
Chairman David Jones said the group continues to be "disappointed" with the pace at which the relevant Norwegian planning authorities make decisions. He said the company will await further news on the scope of the environmental impact assessment work required.
Cash balance for the group during the period was £135,000 down from £307,000 last year. Net assets were up £704,000 from £670,000.
Kodal Mineral's raised £680,000 by placing and subscription of 1.7bn ordinary shares
at 0.04p per share. The shares were placed with new investors and existing shareholders. The proceeds will be used to continue exploration work.
Jones said the group intends to continue its strategy of ground acquisition and low cost exploration in Africa and highlighted potential value they have.
He added: "The current challenging market conditions for mining exploration companies are expected to continue. With the acquisition of the West African projects, the Board has diversified its project risk and will continue to appraise other well valued opportunities for further acquisition and investment."