Bema Gold lost £7 million in the first quarter of 2005, because of a write-down in Venezuela and start-up costs in Chile.

AIM-quoted Bema, which is also listed on Toronto and the American Stock Exchange, blames its first-quarter deficit chiefly on writing down the carrying value of its smelter royalty at Lo Increible in Venezuela and £2 million of start-up costs at its 50 per cent-owned Refugio mine in Chile, writes Robert Tyerman.

Bema is bullish about its 24 per cent of another Chile prospect, Cerro Casale, but has fallen out with and withdrawn its bid for 25 per cent project participant Arizona Star. Bema shares are 8p off today at 95p.