HOPE RISING FOR MULTIVERSE MINING BUT.

If its audited figures for 2016 released recently is anything to go by, there is hope that Multi verse Mining and Exploration PLC will have a better 2017 but not necessarily because its core business, mining, has started to pay off.

According to the 2016 figures, it will be more because income from other sources contributed more to the company's fortune.

In 2016, core revenue from mining activities came to N57.8m up 17.5% on 2015's N49.2m.

Commendable increase no doubt but not in the class of 346.9% growth in other income to N58.1m from N13m.

However, there was a remarkable 67.4% drop in cost of sale to N45.9m in spite of core revenue increase thus landing Multiverse in N11.9m gross profit as against N91.5m gross loss in 2015.

Much as loss associated with inventory usage dropped by 78.4% to N27.5m and administration cost rose by 13.7% to N105.7m, 40.6% increase in finance charges to N342.6m nailed any hopes for profit in 2016.

Besides, at N115.9m, total income was only about N10m more than cost of administration.

In the end Multiverse could only settle for lower N405.9m loss in 2016 but has to grapple with increased working capital deficit this year amidst 56.8% rise in short term debts to N1484.6m.

Tough combination? May be but it would have been tougher if other income did not increase like it did in 2016.

MULTIVERSE MINING & EXPLORATION PLC: Nm
                  Full year.
                      2016.      2015
Total income 115.9.    62.2
Core income.  57.9.     49.2
Cost of sale.   45.9.    140.7
Gross profit    11.9.   (91.5)
Inventory gap (27.5) (127.4)
Other income  58.1.     13.0
Administration 105.9  93.0
Distribution.        -          6.55
Finance cost.  342.6  243.7
Profit b4 tax   (405.9) (580)
Working cap.(2012.3)(1753)
Short debts   1484.6   946.8

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