Net liabilities at Arkle Resources ballooned last year

Irish gold and zinc explorer Arkle Resources saw its net current liabilities balloon last year leading to concerns about the company's ability to continue as a going concern.

Arkle, which was founded by John Teeling and was formerly known as Connemara Mining, published its final results for the year ended December 31st 2019 on Monday.

The group incurred a loss for the financial year of €313,860, down from €337,306 the year before, while the group had net current liabilities of €182,501 compared to €7,493 in 2018.

This, the company said, led “to concern about the group and company’s ability to continue as a going concern”. The group had a cash balance of €39,631 compared with €106,031 the year before.

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“The directors have prepared cashflow projections for a period of at least twelve months from the date of approval of these financial statements,” the company said. “The cashflow projections include any anticipated impacts of the Covid-19 pandemic on the group.

“The cash flow projections prepared by the group indicate that the funds available are sufficient to meet the obligations of the company for a period of at least twelve months from the date of approval of these financial statements.”

Arkle said the unprecedented spread of Covid-19 across the world has had a “significant impact” on the global economy. “The group are actively monitoring the impact and continue to engage with banks and implement measures to mitigate the financial impacts of Covid-19,” it said.

In terms of outlook, Mr Teeling said the Arkle team has “extensive international experience” and sees “a flow of potential deals”.

“None, to date, have offered better than what we have in Ireland,” he said. “Many are cast-offs from other exploration companies, others are in jurisdictions with title issues.

“We have identified one or two areas where we believe our skill set and experience can bring value. But the immediate future goal is to create value in our Irish zinc and gold interests.”