11th Jun 2018 11:13
LONDON (Alliance News) - Chaarat Gold Holdings Ltd said Monday its loss multiplied in 2017 as the company incurred high impairment charges for its Chaarat gold project in the Kyrgyz Republic.
For 2017, the exploration and development company posted a pretax loss of USD18.1 million versus USD4.5 million in 2016.
The company did not post revenue for the year and incurred USD10.0 million in impairment of assets-under-construction costs. It explained that "work on the Tulkubash feasibility study, confirmed that previously capitalised assets under construction were no longer intended to be utilised as part of the development of the Chaarat project".
The Tulkubash oxide heap in the Kyrgyz Republic is the first stage of the development of the company's gold project which has been designed to produce 100,000 ounces of gold per year.
"During 2018 Chaarat intends to invest significant further sums in the Tulkubash project," the company said.
The company's shares are currently suspended from trading in London as the company is considering a potential reverse takeover of the Kumtor gold mine in the Kyrgyz Republic.
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