LeadFX Releases Q2 Financial Results, Details Quarter Activities

LeadFX (TSX: LFX) has today (August 15) reported its second quarter 2018 financial results.

According to the release, during the quarter the company has been busy at its Paroo Station lead mine in Western Australia.

• Initiated an early works engineering program with SNC-Lavalin Australia
• Undertook further metallurgical test work to provide additional data to the early works program and to explore the opportunities to improve the operational performance of the existing concentrator at the mine;
• Committed to a demonstration plant program to support project financing initiatives for the hydro-metallurgical facility; and
• Continued the environmental approval process for the hydro metallurgical facility and the mine extension, receiving a positive recommendation from the Western Australian Environmental Protection Authority on August 1, 2018.

As quoted in the press release:

The net loss before tax for the Quarter was AU$4,395,000 (2017: AU$2,442,00) and first half was AU$7,698,000 (2017: AU$5,313,000). The net loss includes an impairment charge for the value of the Company’s interests in Chief of AU$3,693,000 (2017: AU$nil), a write down of the receivable from Valhalla Mining of AU$143,000 (2017: AU$nil), offset in the quarter by a credit for AU$1,396,000 (2017: AU$nil) and first half by AU$226,000 (2017: AU$nil) reflecting the accounting for share purchase warrants issued pursuant to the private placements completed in January 2018 and in the current quarter. Care and maintenance and corporate expenses continue to trend at or slightly below the corresponding quarter and first half of 2017.

Cash on hand at the end of the Quarter was AU$154,000 (2017: AU$911,000). Cash flow from operating activities was lower than the corresponding period in 2017 as a result of the accumulation of creditors at quarter end. The company’s activities during the quarter were financed from cash reserves on hand at the start of the quarter, proceeds from the private placement dated April 9, 2018 of AU$531,000 and proceeds from the exercise of share purchase warrants on June 4, 2018 of AU$545,000. There were no cash flows from investing activities during the quarter.

Click here to read the full LeadFX (TSX:LFX) press release.