A one-off C$49.1mln gain on its investment in Puna Operations Inc (POI) saw Golden Arrow Resources Corp (CVE:CRG) register a profit in 2017.
The pre-revenue mineral resource company made a profit after tax of C$39.72mln versus a loss in 2016 of C$5.88mln.
The company ended the year with cash and cash equivalents of C$16.19mln, up from C$8.73mln a year earlier.
In May of last year, the group formed POI, a joint venture that combines the Chinchillas project with SSR's producing Pirquitas operation in Argentina.
The business combination provided Golden Arrow with an opportunity to fast-track development of the Chinchillas property, in a capital efficient manner, through use of the existing production facilities at the Pirquitas Mine and establishment of common infrastructure, while benefiting from SSR’s proven management team with extensive mine construction and operational expertise
The C$49.1mln one-off gain relating to the joint venture comprised a C$17.81mln payment from SSR and a C$31.98mln upward adjustment in the “fair value” of its stake in POI.
During the year, the company made an operating loss of C$9.34mln, versus a loss the year before of C$3.45mln. During the final three months of the year, the loss from operating activities decreased by C$268,113 to $1.40mln from compared to C$1.13mln in the corresponding period of 2016.
Net loss after tax for the final quarter of 2017 was C$1.06mln, compared to a net loss of C$1.01mln in the final three months of 2016.
Cash outflow from operating activities widened to C$8.96mln in 2017 from C$5.39mln the year before.