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Glencar Mining has cut its annual loss and is bullish over gold prospects at Komana East and West in Mali.

Helped by the absence of the previous year’s £455,200 exceptional charge, the Dublin-based company cut its loss from £750,000 to £290,000 in 2007 and ended the year with doubled cash of £1.6 million, following a £2.4 million placing in the second quarter. Chairman Sean Finlay says drilling has yielded encouraging results and Glencar believes its next gold resource update for Komana will show a ‘significant increase on the 520,000 oz estimate reported last October’.

He claims, ‘We have advanced the Komana property to the point where we can clearly anticipate the development of a producing mine.’ The company is looking at other deposits nearby and is also pursuing projects in Ghana and Uganda.

Originally fully listed, Glencar shares were notably poor performers following disappointment over the company’s original project at Wassa in Ghana and transferred to AIM in 2005 at a depressed 2.5p. They rebounded to 15p the following year, but later lost momentum.

At 8.75p, valuing the company at £22.6 million, they now have speculative appeal.

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