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Caracal Gold interim loss narrows as costs decrease sharply

4th Nov 2024 14:26

(Alliance News) - Caracal Gold PLC on Monday released its half-year results, whose publication had been delayed.

The East Africa-focused gold producer said pretax loss narrowed to GBP2.6 million in the six months that ended December 31 from GBP3.7 million a year ago.

Revenue dived to GBP646,000 from GBP2.4 million, but cost of sales fell to GBP1.2 million from GBP3.3 million.

Caracal shares are are suspended from trading in London due to the delay in publishing the results.

Chair Simon Grant-Rennick said: "The completion of the interims indicates that the company is one step nearer to being able to lift the company's suspension."

Early last month, Caracal said it entered into a USD500,000 financing agreement with Koenig Vermoegensverwal MBH. Caracal will repay the company the principal and accured interest amounting to USD1 million at the end of 2025.

The funds will cover costs associated with a mining license being issued to its subsidiary Tyacks Gold Ltd, 2024 audit payments to the new auditor, and working capital.

"We will now prioritise and complete phase 2 of the Cynergy investment while completing the interim accounts and 2024 audit," Caracal Chair Grant-Rennick said.

Caracal later confirmed it has received the money.

Last weeky, Caracal announced it received the mining license for the Kanegele project in Tanzania and the finalisation of payment terms with Tyacks Gold Ltd's vendors.

Chair Grant-Rennick said: "Securing the mining license for the Kanegele project is a pivotal milestone in our broader strategy to bring this high-potential asset into production. With shallow, high-grade gold resources and robust historical work already completed, Kanegele ticks all the right boxes for development. We are also excited to move into the next phase of our partnership with Cynergy, which will provide essential funding for our Kilimapesa expansion."

By Tom Budszus, Alliance News slot editor

Comments and questions to [email protected]

Copyright 2024 Alliance News Ltd. All Rights Reserved.

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