COPPERMOLY AT A LOSS

COPPERMOLY Limited (COY) has recorded a $2.1 million loss for FY10 but improved its cash position by $1.7 million, as the company continues exploration work on its Papua New Guinea copper-gold projects.

In the company’s annual report released today, chairman Peter McNeil (pictured) highlighted the positives of the company’s joint venture with Canadan multinational Barrick Gold and a fourfold increase in market capitalisation.

“Coppermoly has always sought to keep its operating overheads to a bare minimum and it continues to do so. During the 2010 financial year the cash position was improved by approximately $1.7 million,” he said in a statement to the ASX.

“The company has substantially advanced its exploration licenses in less than three years of listing on the Australian Stock Exchange. It has also secured the future – to the extent that it is possible – for the ongoing exploration of those tenements.

“Coppermoly has also sought out new exploration areas in Papua New Guinea where it will seek success utilising the company’s exploration expertise.”

Managing director Peter Swiridiuk says the potential of the PNG projects continue generating market interest and driving the share price upward.

"To give you an idea of the potential value, extracting 100 million tonnes at a grading of one per cent copper would generate $7-8 billion," he says.

"Being a smaller miner we are looking at quantities more like 10 million tonnes, which, at one per cent you're looking at around $700 million. Some of the mineral grades being discovered are as high as four per cent copper which becomes easier and more efficent to extract and obviously has a higher value. These types of grades have never been seen on the island before."

COY shares rose 3.8 per cent this morning to $0.1350.