Singapore's LionGold warns of loss in first half

[SINGAPORE] Singapore's LionGold Corp Ltd, one of the companies at the centre of a penny stock crash last year, said it expected to report a loss before taxes for the first half of its fiscal year due to impairment losses.

Share prices in LionGold, Blumont Group Ltd, and Asiasons Ltd plunged last October, wiping out around S$8 billion (US$6 billion) in market value in just two days after huge run-ups. The scandal led to a series of proposed reforms to the city-state's stock trading rules.

The company, which is involved in gold exploration, mine development and gold production, said it was in the process of finalising its results for the half year ended September and its board advised investors to exercise caution when dealing in its shares.

LionGold shares closed down 4.35 per cent at 0.022 Singapore cents on Monday.

REUTERS