Brockman Mining Limited: Annual Results Announcement for Year Ended June 30, 2024
BCK (BCK) Share Update September 2024 Monday 16th
Brockman Mining Reports Reduced Annual Loss Amid Improved Financial Performance
Brockman Mining Limited (SEHK: 159, ASX: BCK) has reported its audited consolidated results for the year ended June 30, 2024, showing a significant reduction in annual loss compared to the previous year.
Instant Summary:
- Annual loss reduced to HK$13.4 million from HK$56.6 million in 2023.
- Operating loss decreased to HK$24.3 million from HK$66.7 million.
- Finance income increased significantly to HK$11.7 million from HK$221,000.
- Exploration and evaluation expenses dropped to HK$9.5 million from HK$50.2 million.
- Income tax benefit increased to HK$7.3 million from HK$16.7 million.
Financial Performance
Brockman Mining Limited has reported a significant reduction in its annual loss for the year ended June 30, 2024. The company recorded a loss of HK$13.4 million, a substantial improvement from the HK$56.6 million loss reported in the previous year. This reduction in loss is attributed to several factors, including increased finance income and decreased exploration and evaluation expenses.
The company's operating loss also saw a notable decrease, falling to HK$24.3 million from HK$66.7 million in 2023. This improvement was driven by a reduction in exploration and evaluation expenses, which dropped to HK$9.5 million from HK$50.2 million. Administrative expenses remained relatively stable at HK$16.4 million, compared to HK$16.6 million in the previous year.
Income and Expenses
Other income for the year increased significantly to HK$61.6 million from HK$48,000, primarily due to proceeds from the sale of a non-core tenement. Finance income also saw a substantial increase, rising to HK$11.7 million from HK$221,000, while finance costs increased slightly to HK$7.9 million from HK$6.6 million.
Tax and Comprehensive Income
The company reported an income tax benefit of HK$7.3 million, up from HK$16.7 million in the previous year. This increase was mainly due to the recognition of a deferred tax asset in respect of the Group's Australian tax losses for the current period. The total comprehensive loss for the year was HK$12.7 million, a significant improvement from the HK$78.9 million loss reported in 2023.
Balance Sheet and Assets
As of June 30, 2024, Brockman Mining Limited's total assets amounted to HK$713.3 million, slightly down from HK$724.8 million in the previous year. The company's non-current assets remained stable at HK$707.9 million, while current assets decreased to HK$5.4 million from HK$17.4 million. The company's total equity stood at HK$498.5 million, down from HK$511.2 million in 2023.
The reduction in annual loss and operating loss is a positive sign for Brockman Mining Limited, indicating improved financial performance and cost management. The significant increase in finance income and the reduction in exploration and evaluation expenses are particularly noteworthy. However, the company's cash position has weakened, which could impact its ability to fund future projects.
Investor Reaction:
Analysts are likely to view the reduction in annual loss and operating loss positively, as it demonstrates improved financial performance and cost management. However, concerns may remain regarding the company's cash position and its ability to fund future projects. Investors will be closely monitoring the company's strategic plans and funding arrangements going forward.
Conclusion:
Investors should take note of Brockman Mining Limited's improved financial performance and reduced annual loss. While the company's cash position has weakened, the significant increase in finance income and reduction in exploration and evaluation expenses are positive signs. Investors are encouraged to monitor the company's strategic plans and funding arrangements closely.