Zanaga Iron Ore Co Ltd on Friday reported it widened its annual pretax loss but said it had sufficient funds moving forward to support its development costs.

Shares in Zanaga were down 7.3% at 1.90 pence on Friday morning in London.

In 2021, the iron explorer reported a widened pretax loss of $1.9 million, increasing from a $1.8 million loss the previous year.

Net assets at December 31 increased slightly to $37.7 million from $37.6 million at the same time a year prior.

The company said the iron ore market experienced continued strong demand from China during the year, with sustained strong iron ore prices and ‘robust’ product premiums.

Zanaga said it was satisfied that the company will have sufficient funds to meet its own working capital requirements up to and beyond, twelve months from the publication of its results.

It had a cash balance of $300,000 at June 29.

‘During 2021 it was pleasing to conclude an updated costing exercise, using independent technical experts to evaluate the Stage One development costs. Furthermore, an update exercise was undertaken to evaluate the Ore Reserve for the Project. This resulted in the reconfirmation of the Zanaga Ore Reserve - which remains one of the largest ore reserves globally,’ said Chair Clifford Elphick.

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