Shore Gold Reduces Net Loss in Q1

Shore Gold Inc., which operates the Star-Orion diamond project in Canada, narrowed its net loss for the first quarter ended March 31, to $1.5 million from $3.8 million in the same period of last year.

The exploration firm also recorded working capital of $7.2 million at the close of the quarter.

During the first quarter of 2013, the company said its main focus was on preparing for the final Environmental Impact Statement for the Star-Orion South Diamond Project and continuing to seek opportunities for development capital for the project.

In its outlook statement, the company said that rough prices rose during the first quarter of 2012, but the world financial situation caused the price of rough to decrease during the second and third quarters of 2012.

"Rough prices have, however, increased since the end of the third quarter of 2012 with overall rough diamond prices at the end of 2012 increasing slightly from rough diamond prices at the end of 2011."

As of May 7, the company had approximately $6.7 million in cash and cash equivalents and short-term investments, excluding $1.8 million in restricted cash.

Measures taken early last year will enable it to conserve its cash position and provide an extended operating window in which the firm can complete the environmental permitting process and continue to seek opportunities for development capital.