17:33 Thu 26 Sep 2019
Interim Results for the Six-Month Period Ended 30 June 2019
--(BUSINESS WIRE)--
中国有色黄金有限公司
(‘CNG’ or the ‘Company’)
Interim Results for the Six-Month Period Ended
(AIM:CNG), the gold producer with the
operational (‘the Pakrut Project’) in the , today announces its interim results for the six-month
period ended .
The results below are available on the Company's website at .www.cnfgold.com
Highlights
For further information please visit the Company’s website () or contact:www.cnfgold.com
Yu Lixian, Managing Director
Tel: +86 10 8442 6681
(NOMAD & Broker)
,
Tel: +44 (0)207 220 1666
Blytheweigh (PR)
,
Tel: +44 (0)20 7138 3224
Project Summary
, of which CNG has 100 per cent ownership, is
situated in approximately 120km northeast of the capital city
. Pakrut is located within the Tien Shan gold belt, which
extends from into , and ,
and which hosts a number of multi-million ounce gold deposits.
CNG has entered the stage of steady state production.
About
is a secular republic located in . The country is
a member of the Commonwealth of Independent States and the . hosts numerous operating precious
metal mines as well as the largest aluminum smelter in .
CNG's management team has extensive experience in the mining industry in
.
CEO’s Statement
As CEO of the board, it gives me great pleasure to present the CEO’s
statement of the Interim Results for the Six-Month Period Ended . Following the successful trial production in 2018, the Pakrut gold
mine entered steady state production and full operation in 2019, making
the Group a gold producer.
From January to , a total of 300,300 tons of ore was extracted
from the Pakrut gold mine During that same six month period:
From 2019, the gold price began to rise, especially after ,
which has benefited the Group. From January to , the Group
sold 20,907.53oz of gold ingots, achieving sales revenue of
(unaudited), with an average sales price of
/ oz.
Going forward, the Group intends to carry out a technical renovation of the carbon in leach (“CIL”) process and equipment; an optimization of the current mining methods used by the Group; a review of the local staff ; and will review other matters in order to reduce costs and increase efficiencies at site.
Financial Results
The Company continued its development and construction work during the
first six months of 2019, Administration expenditure was (30
: ). The big increase was due to the depreciation
of the property, plant and equipment, more details of which are set out
in note 5 below. The operating profit for the Group was (30
: loss ). Total cash equivalents at the end of the
period for the Group amounted to (:
). As at , there was a net liability of
(: net assets of ). The net liability
position has arisen due to CNG’s Pakrut project entering into production
from , therefore the expenses relating to the project have
not been capitalized but instead have been expensed, which includes
borrowing costs. It is expected that after the production stage has
stabilized, the associated increase in sales revenue will alleviate the
negative net asset position.
To date the Group has been reliant on support from its major
shareholder, CNMC, and its associates. In , the Group drew
down on a loan facility with
Construction Bank Corporation Macau Branch.
The Group commenced production in and accordingly is now
cash generative. As mentioned in previous announcements, in order to
facilitate the repayment of existing loans, a broader refinancing
package will be required. Discussions are ongoing and further updates
will be provided in due course .
Outlook
With the normal production and operation of Pakrut gold mine restored, the Group remain confident of achieving the production target of 660,000 tons of ore set at the beginning of this year. In addition, with the implementation of a series of measures to reduce costs and increase efficiencies including the technical renovation of CIL, the production capacity could be improved and the associated outputs and benefits could be increased and improved.
The Group has long been dedicated to becoming a significant gold
producer in and participating in the “Belt and Road
Initiative” with the substantial support and advantages of major
shareholders. The Group has also established a strong relationship with
the government of and other Central Asian countries and the
directors believe the Company is well positioned to make acquisitions of
more gold resources and gold mines in the future, so as to create
greater benefits for our shareholders in the future.
I would like to take this opportunity to thank all our employees, management and advisors for their continued efforts in 2019 and thank our shareholders for their continued support. I very much look forward to updating our shareholders further on the mine developments, production levels, new strategy and direction.
CEO
View source version on :businesswire.comhttps://www.businesswire.com/news/home/20190925006032/en/
Source:
- From January to , a total of 300,300 tons of ore was
extracted from the Pakrut gold mine; 309,600 tons of ore was
processed; and 15,557.04oz gold ingots was poured
June 2019 - From January to , the Group sold 15,557.04oz of gold ingots,
achieving sales revenue of
June 2019 US$20.881 million - the Group intends to carry out a technical renovation of the carbon in leach (“CIL”) process and equipment; an optimization of the current mining methods used by the Group; a review of the local staff ; and will review other matters to seek to reduce costs and increase efficiencies at site.
- 309,600 tons of ore was processed;
- the average grade of the raw ore was 2.10g/t;
- the recovery rate of processing was 87.85%;
- 11,480 tons of concentrate was produced from the processing plant; and
- 8,210.7 tons of concentrate among them was treated in the smelter (the recovery rate of smelting was 88.82%) and 15,557.04oz gold ingots were poured.
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of...
FOR OUR FULL DISCLAIMER CLICK HERE