March 11, 2010 / 12:30 PM / 8 years ago

UPDATE 1-Gabriel Resources Q4 loss wider than estimates

* Says needs $1 bln for gold mining project in Romania

* Q4 loss/shr C$0.03 vs est loss/shr C$0.01

March 11 (Reuters) - Gabriel Resources Ltd (GBU.TO) reported a quarterly loss that was wider than analysts’ estimates and said it requires about $1 billion to complete its high-potential Rosia Montana gold mining project in Romania.

The company said it has developed a financing plan that includes senior debt financing in combination with equity and other potential financing sources in order to raise funds.

“If we were unable to raise the required funds, we would seek strategic alternatives to move the project towards development,” Gabriel said.

The company, which has been struggling to develop the Rosia Montana project, added that it was seeing an increase in political will in Romania to see the project move forward.

For the fourth quarter, the company reported a loss of C$10.7 million, or 3 Canadian cents a share, compared with a profit of C$4.0 million, or 2 Canadian cents a share, a year ago.

Analysts on average expected the company to report a loss of 1 Canadian cent a share, according to Thomson Reuters I/B/E/S.

Operating costs jumped 53 percent to C$7.9 million.

The company recorded a foreign exchange loss of C$2.8 million, compared with a gain of C$8.6 million last year.

Shares of Gabriel closed at C$4.54 Wednesday on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Anne Pallivathuckal)

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