Navan Mining warned that its performance for the first half of the current year will be below expectations, after an increase in production was eroded by lower metal prices.
"The results for the full year will inevitably be driven by any subsequent movement in commodity prices either up or down," Navan chairman Mr Richard Lockwood said in the text of a speech to today's AGM.
He said the softness in the base metal markets is a result of the combination of hedge fund activity and the slowing down of world economies, particularly in the US.
Navan which has operations in Spain and Bulgaria, said operating performances are up to expectation mid-year and both mining complexes in Spain and Bulgaria are now fully capitalised and performing well.
Total ore treated for the first five months was 30 per cent higher than in 2000 with copper, lead and silver production up by 119 per cent, 37 per cent and 69 per cent respectively.
Turning to Navan's recent Krumovgrad gold discovery in Bulgaria, Mr Lockwood said the company is examining various options and will be appointing corporate advisors to assist it in optimising the various strategic and financial opportunities that Krumovgrad creates.
AFP