24th Jun 2014 09:30
LONDON (Alliance News) - Chaarat Gold Holdings Ltd Tuesday said its net loss widened in 2013 as impairment charges offset reduced exploration and administration expenses during the year.
The exploration and development company, which is yet to produce any revenue, said its net loss widened to USD14.6 million in 2013 from USD11.5 million in 2012.
Chaarat Gold said its exploration expenses fell to USD4.8 million from USD6.3 million and its total administrative expenses, including share options expenses and foreign exchange gains, fell to USD5.7 million from USD6.3 million.
However, the company noted that it was hit by a USD4.1 million impairment charge after the board reviewed the company's expenditure commitments, which led to increased losses.
Chaarat Gold is currently carrying out a definitive feasibility study for its Chaarat gold project in the Kyrgyz Republic after it was awarded its mining licence for the site.
In April, the company said it had increased its measured and indicated JORC resource for the Chaarat gold project, but its total resource had decreased due to a fall in the size of its inferred category.
It said that as a result of positive results from additional drilling during 2013, it had increased its total measured and indicated JORC resource on site by 20% to 3.59 million ounces at a grade of 3.3 grams per tonne with a 2 grams per tonne cut-off grade.
However, Chaarat also said that due to stricter criteria for inclusion of material in its inferred category, it has decreased its overall measured, indicated and inferred resource by 8.1% to 5.29 million ounces from 5.76 million ounces previously.
The company said in April that, due to different mining methods expected to be used at the mine, it has presented the resource information at a range of cut-off grades.
Chaarat Gold shares were down 2.5% to 9.58 pence on Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
CGH.L