Arkle Resources, the Irish-based zinc and gold explorer, said it had narrowed operating losses in the first half of the year. The group also said higher prices for metals are likely as a growing shortage of critical metals becomes “absolutely certain”.
Pretax profit dipped to €21,000 in the first half from €37,000 a year earlier which was largely due to movement in the fair value of warrants.
The company has been concentrating on its Irish zinc holdings in recent months, along with its gold licences in Wicklow and Wexford.
“Environmental targets for 2030 and 2050 cannot be reached without massive and substantial investment in both mineral and hydrocarbon resources. That is reality,” the company said.
“Every electric vehicle (EV), every windmill requires metals. In the case of windmills, an offshore windmill needs 1,650 tons of metals. Every EV requires metals for the body and scarce battery group metals for propulsion. There are huge and growing gaps on projected demand against supplies.
“Since most mines have short lives, finding new sources of metals is a condition precedent for environmental targets,” the company said, adding that this required investors willing to put up risk capital. “Without discoveries there can be no new mines,” Arkle said, noting that private investors have deserted explorers and institutions have backed off funding development.
“Lack of investor interest in Irish zinc and gold exploration combined with a growing anti-mining sentiment in certain parts of the Irish Government led the board to consider opportunities outside of Ireland,” it said.
The explorer said it was looking at opportunities to mine lithium, cobalt and platinum group minerals.