Afriore Reports Financial Results for periods ended August 31, 2006
Afriore Limited, mainly engaged in the mineral exploration projects in South Africa, has announced its financial results for the three and six month periods ended August 31, 2006. After the significant losses of the previous period ended on May 31, 2006, which could be explained by the increase at Akanani expenditure, the company, again, reported on a loss for the three month period of $5,120,490 or $0.10 per share, and a loss for the six month period ended August 31, 2006 of $6,122,621 or $0.14 per share.
These losses are also explained with a significant increase in exploration expenditure for Akanani project, which is currently the most important development of Afriore. It is enough to say that from the exploration costs for the six months period that totalled $4,053,364, $3,683,958 were for Akanani. The increase in Akanani expenditure followed the continuing receipt of positive results from the Project’s intensive exploration program.
Afriore has reported also on a foreign exchange loss of $2,116,269 for the six months of 2006, compared to $503,699 for the same period of 2005. For this, the substantial weakening of the South African Rand can be responsible, as well as Stock Based Compensation expense of $3,685,000 resulting from revaluing of 2,500,000 warrants per the Black-Scholes method, issued in terms of an agreement between Afriore and the original Black Economic Empowerment Shareholders of Akanani Mining Limited.
In the report Afriore announced on its plans to continue concentrating on the acquisition, exploration and development of resource properties in Africa and elsewhere, and in particular to concentrate on platinum group and gold metals.