28th Sep 2018 14:39
LONDON (Alliance News) - Chaarat Gold Holdings Ltd on Friday said its loss widened in the first half of 2018 as a result of both administrative expenses and finance costs.
In the six months to June 30, the Kyrgyz Republic-focused miner reported a loss of USD5.1 million for the period, compared to a USD3.1 million loss the year before.
Administrative expenses were its most notable contributor, increasing to USD3.1 million from USD1.9 million. Finance costs were also of note, rising to USD1.4 million from USD388,000.
Chaarat's Tulkubash oxide gold project was the main focus of the six-month period. Indeed, the first phase of a convertible debt placement was completed during the period, aimed at funding the project.
The miner raised only USD17.6 million of its USD100 million goal, however, and as such has made amendments to the terms of the notes, moving from a single interest payment on the final loan date to a semi-annual cash coupon.
"I am delighted with the diligent execution of our strategy as we move towards our goal of becoming a mid-tier gold producer," said Chaarat Executive Chairman Martin Andersson.
"The company is in a sound financial position, has a strong portfolio of investments and a management team committed to driving Chaarat's growth. We look forward to the next six months with confidence," Andersson added.
Chaarat Gold shares are currently suspended from trading on AIM in London, with its proposed takeover of the Kumtor gold mine in Kyrgyzstan being classified as a reverse takeover.
Related Shares:
CGH.L