Armadale Capital PLC on Friday reported a narrowed loss and lower expenses last year, and remained confident in the future prospects of its graphite mining project in Tanzania.

Armadale, an Africa-focused natural resource projects investor based in London, reported a 2022 pretax loss of £206,000 compared to £333,000 in 2021.

The company said it did not earn revenue in 2022 because its business related solely to investments in non-revenue producing resource projects and companies.

The fair value of Armadale’s investments increased last year to £103,000 compared with £8,000 in 2021.

Armadale said administrative expenses decreased by 6.4% to £309,000 from £330,000 year on year. Finance costs fell to zero from £11,000.

The company did not declare a dividend for 2022, unchanged from last year.

Director Nicholas Johansen said Mahenge Liandu, Armadale’s graphite mining project in Ulanga, Tanzania, ‘continues to represent an exciting opportunity for the group.’

Johansen cautioned that ‘the company’s ability to achieve its strategy with respect to [Mahenge Liandu] is dependent on the further fundraising. The directors continue to keep other investment opportunities...under review, which the board believe could deliver significant value to shareholders.’

Armadale gained environmental approval to produce natural flake graphite at Mahenge Liandu in March 2021, and secured the mining licence in September of that year.

Shares in Armadale Capital were down 6.3% at 1.26 pence in London on Friday.

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