Noventa Ltd. reported a narrower first half pretax loss and said the significant improvement in performance of its tantalum operation in August is encouraging and if sustained, will result in the company reaching cashflow break-even in December 2008.

For the first half to end-June, the AIM-quoted tantalum mining and exploration company reported a pretax loss of $6.8 million from $7.97 million, last year as revenues grew to $2.1 million from $580,000.

The company said its morganite mining is progressing well and is exceeding expectations. For the three months to end-August, the monthly average of morganite increased 200 percent to 1,200 kgs.

Based on the existing mine plan at Marropino, the company said the hard rock circuit needs to be operational by the end of 2009 at a cost of about $15 million. This is expected to increase annual production capacity to between 450,000 and 550,000 pounds from 360,000 of tantalum. – Thomson Financial