logo-loader
RNS
China Nonferrous Gold Limited

Interim Results for the Six-Month Period Ended 30 June 2019

--(BUSINESS WIRE)--LONDON

中国有色黄金有限公司China Nonferrous Gold Limited

(‘CNG’ or the ‘Company’)

Interim Results for the Six-Month Period Ended30 June 2019

(AIM:CNG), the gold producer with the operational (‘the Pakrut Project’) in the , today announces its interim results for the six-month period ended .China Nonferrous Gold LimitedPakrut Gold ProjectRepublic of Tajikistan30 June 2019

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

China Nonferrous Gold Limited

Yu Lixian, Managing Director

Tel: +86 10 8442 6681

(NOMAD & Broker)WH Ireland Limited

,Katy MitchellJames Sinclair-Ford

Tel: +44 (0)207 220 1666

Blytheweigh (PR)

,Tim BlytheCamilla Horsfall

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.The Pakrut Gold ProjectTajikistanDushanbeUzbekistanTajikistanKyrgyzstanWestern China

CNG has entered the stage of steady state production.

AboutTajikistan

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 .TajikistanCentral AsiaTajikistanCentral AsiaTajikistanShanghai Cooperation Organisation

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.30 June 2019

From January to , a total of 300,300 tons of ore was extracted from the Pakrut gold mine During that same six month period:June 2019

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.May 2019August 2019US$27.87millionUS$1,333.10

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.US$8,164,099US$2,179,000US$278,000US$3,363,000US$16,147,939US$61,896,000$1,363,000$9,318,000June 2018June 201830 June 201830 June 201930 June 20191 January 2019

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.January 2019US$20 millionUS$100 millionChina

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 .January 2019

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.Central AsiaTajikistan

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.

Yu Lixia

CEO

26 June 2019

China Nonferrous Gold Limited

Source:China Nonferrous Gold Limited

  • 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 pouredJune 2019
  • From January to , the Group sold 15,557.04oz of gold ingots, achieving sales revenue ofJune 2019US$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.
NO INVESTMENT ADVICE

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

7 min read