Aquila lodges loss on exploration costs

Perth-based Aquila Resources says its interim loss of $15.8 million was primarily due to an increase in spending on exploring and evaluating its tenements.

In the previous half-year Aquila recorded a $12.4 million loss.

Over the half year to December 31, the company invested $45.1 million on exploration and feasibility studies at its iron ore, coal and manganese projects in Western Australia, Queensland and Southern Africa.

Aquila's revenue increased to $88.2 million from $75.5 million in the previous half-year, despite Aquila's 50 per cent owned Isaac Plains coal mine being significantly impacted by adverse weather and flooding in central Queensland.

"Subsequent to 31 December 2010, production has recommenced and several sales have been completed. However, force majeure remains in place on a number of specific sales contracts and the process to fully restore production and dewater the mine site is continuing," Aquila said in its results statement.

At 9:20AM (WST) Aquila's stock had shed 2.1 per cent, to trade at $8.56.