Former sex toy seller Delecta limps into mining after soft half
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Sex toy miner Delecta (ASX:DLC) reported limp profits for the December half – an 88 per cent drop compared to the same period in 2017.
Delecta, which has just acquired an old copper cobalt project in the US, told investors that net profits were down 88 per cent, from $188,000 to $18,000.
Revenue fell only marginally to $8.4 million, but the company says losing joint distribution rights to one of the business’s premium suppliers continue to affect sex toy sales.
This lost revenue is slowly being replaced as it acquires new premium suppliers, the company says.
Profitability was also impacted by “margin pressure” from joint distributors.
It’s probably why Delecta is putting its fingers in a few different pies, making the ‘logical’ transition into cobalt and copper exploration.
Delecta told investors earlier this month that it would go ahead and buy an old cobalt and copper mine in Nevada, US.
This isn’t the first time Delecta has dabbled in resources.
In 2014, it acquired an interest in an oil and gas field development project in the US; but this segment has now been discontinued.