The company had scaled back the Amantaytau development plans after delays in raising cash and it said it was in talks with a major Chinese contracting and financing group for financing AGF’s underground sulphide mine.

The first underground production is still targeted to take place in the second half of 2011, said the company, whose primary operations are in Uzbekistan.

For the six months ended 30 June, the company posted a pretax loss of US$5.2 million, compared with a pretax profit of US$1.8 million a year earlier.

The AGF joint venture contributed an attributable loss of US$1.56 million, including US$1.69 million of exceptional costs related to restructuring the cost base, Oxus said.

The company said its first-half gross revenue, excluding attributable joint venture income, fell to US$488,000 from US$1.65 million.

Total group earnings showed a loss after taxation of US$5.18 million (1.35 cents per share loss) against a profit of US$$1.84 million (0.50 cents per share profit) in 2008.

Total assets decreased to US$67.53 million (31 December 2008: US$75.65 million; 30 June 2008: US$92.53 million) including cash and cash equivalents of US$6.18 million (2008: US$17.31 million).