The Exploration Company Nickel Mountain Resources Reports an Increased Loss
The company’s Russian oil project has been written down by approximately SEK 176 million….
The exploration company Nickel Mountain Resources reports an increased loss due to a write-down of the company’s Russian oil project. As expected, the company does not report any revenue.
Operating profit was SEK -177.0 million (-2.7).
Profit before and after tax was SEK -176.7 million (-2.9). Earnings per share ended up at SEK -0.34 (-0.007).
Cash and cash equivalents amounted to SEK 2.3 million (3.8).
The company’s Russian oil project has been written down by approximately SEK 176 million in the group, among other things, the parent company’s trade receivable from the subsidiary Mezhlisa of approximately SEK 123 million has been written down to zero. The write-down has no effect on cash flow or liquidity and is considered by the company to be able to facilitate the process of selling the project. The company has announced that the Russian oil project is planned to be divested or enter into a partnership regarding the same before the end of 2020.
“The business continues to develop with the intention of demonstrating commercial assets. The development of the company’s projects takes place in the various subsidiaries. The company’s continued strategic focus is primarily on the company’s projects in base metals and secondarily the company’s gold projects,” the company writes about the future.