Ivanhoe Energy (TSE:IE) (NASDAQ:IVAN), which operates in Canada, the U.S. and Ecuador, rose in New York trading after reporting net loss from operations narrowed in the first quarter thanks to lower general and administrative expenses.
Ivanhoe's U.S.-listed shares gained 1.1 percent to 49.5 cents at 10:05 a.m. in New York. The stock has lost 20 percent this year, leaving the company with a market value of $56.9 million.
Net loss from operations shrank to $7.8 million, or 7 cents per share, in the three months ended March 31, from net loss of $11.9 million, or 9 cents per share, a year earlier, the Calgary, Alberta-based company said in a statement today.
The company attributed the decrease to a $5.4 million decrease in general and administrative expenses, or G&A, and a $0.7 million increase in foreign currency exchange gains.
Net cash used in operating activities in the first quarter was $8.7 million, which was $9.9 million lower compared to the net cash used in operating activities of $18.6 million in the first quarter of 2013.
At March 31, Ivanhoe Energy had $13.6 million in cash and cash equivalents.
The company said it continues to reduce G&A spending and is pursuing new funds through potential asset divestiture, strategic alliances and raising new capital.
During the quarter, Ivanhoe applied to the NASDAQ stock exchange for an additional compliance period of 180 days to regain compliance of the minimum bid price requirement. This extension was granted and will expire on Sept. 2.