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ISR Capital posts S$8.3m loss for FY16 on impairment loss on debt securities

ISR Capital on Wednesday reported a net loss of S$8.3 million for the 12 months ended December 2016, a shift from its profit of S$0.7 million a year ago, dragged by other operating expenses of S$7.3 million.

Other operating expenses went up by about S$6.2 million from S$1.1 million in FY15 to S$7.27 million in FY16, mainly due to the impairment loss on debt securities of S$3.7 million and impairment loss on trade and other receivables of S$2.4 million incurred in FY16.

Revenue for the full year came in at S$0.3 million, down 88.3 per cent year on year. This, as revenue FY15 comprised management consultancy fees earned by a subsidiary, and there was no such revenue in FY16.

Loss per share was 0.74 Singapore cent, a reversal from earnings per share of 0.27 cent a year ago.

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As at end-December 2016, net asset value per share was 0.3 cent, down from 0.75 cent in FY15.

Following the signing of the sale and purchase agreements to take a 60 per cent stake in Tantalum Holding (Mauritius) (THM) in mid-2016, the group is awaiting regulatory and shareholder approvals for the acquisition. THM owns 100 per cent of Tantalum Rare Earth Malagasy SARL, which holds an exploration licence for a concession that ISR Capital said hosts rare earth oxides in Madagascar.

The group said it is in the process of commissioning a third independent valuation report to value the proposed acquisition. The Singapore Exchange had taken issue with the acquisition.

ISR Capital is scheduled to resume trading on March 6. Trading of its shares were suspended by the exchange since Nov 27, 2016 to safeguard the interest of the market as there were circumstances that prevented trading on an informed basis.

On Nov 25, John Soh Chee Wen was one of the three individuals charged in the Singapore State Courts for manipulating the shares of Asiasons Capital (now Attilan Group), Blumont Group and LionGold Corp between August 2012 and October 2013. Soh now faces 188 charges related to the crash in the penny stock market.

On Feb 28, 2017, it was revealed that Soh is being investigated for manipulating the share price of ISR and the management of its affairs.