Celtic Resources Holdings today revealed a pre-tax loss of $61,000 in the first half compared to a profit of $561,000 a year earlier.
In a statement, the group said the operating profit for the six months to June 30th of $68,000, although much lower than last year's of $661,000, was "only slightly behind our expectations".
It had anticipated a reduced operating profit due to lower grade oxide ore being mined at Suzdal, Kazakhstan. Gold production there in the period was below budget due to a particularly wet spring but has improved since mid year and is now ahead of forecast, Celtic Resources said.
Group turnover was stable at $3.09 million against $3.11 m for the corresponding period.
Negotiations continue with IG Alrosa over the purchase of 50 per cent of SVMC and other Russian gold mine assets. The commercial transaction has been negotiated but it has not yet been possible to finalise all of the formalities necessary to allow completion.
All parties are striving to achieve a successful result to the deal and shareholders will be informed as soon as there is any news concerning this transaction, it said.
After the sale of its oil and gas assets to Victoria Oil & Gas, Celtic is now focused on gold production and development in the former Soviet Union.