LionGold warns of loss

Among the culprits were exchange losses arising from a USD loan extended to a subsidiary.

The Board of Directors of LionGold Corp Ltd announced that the company and its subsidiaries are expected to report a loss before tax for the half year ended 30 September 2012.

Based on a preliminary review of the Group’s performance, the loss is mainly attributable to: 1. professional and other related expenses incurred by the Group for due diligence investigations in the Group’s corporate exercises, including acquisition of gold mining assets; 2. exchange losses arising from a USD loan extended to a subsidiary; and 3. fair value loss on derivative financial instruments and amortisation expenses related to the USD23 million aggregate principal amount of 9% convertible bonds due 2015.

The Group is in the process of finalising its half year financial results for FY2013, which will be released on or before 14 November 2012.