21st Oct 2019 14:58
(Alliance News) - Chaarat Gold Holdings Ltd said Monday its gold equivalent production from the Kapan gold mine in Armenia dipped over the third quarter of 2019, however its contribution to group earnings increased.
For the three months to the end of September, the gold miner's production from Kapan dipped to 16,377 ounces of gold equivalent, down from 16,996 ounces the quarter before.
However, the realised gold price increased over the period to USD1,474 per ounce from USD1,306 the prior quarter. In addition, recoveries improved to 84% in the third quarter from 82% in the second quarter, following improvements made to the grinding and flotation circuits.
As a result of improved recoveries, better plant utilisation and increased mining rates, Kapan made a positive earnings before interest, taxes, depreciation and amortisation contribution of USD3.6 million, up from USD3.2 million in the first five-month period of control, from February to June.
Looking ahead for Kapan, Chaarat said it is on-track to achieve a run rate of 65,000 ounces of gold equivalent per year, and an annualised Ebitda run-rate of USD20 million by the end of 2019, following improvements from all workstreams.
Meanwhile, the construction of the Tulkubash project is ongoing, with first gold production on-track for late 2021.
Initial earthworks equipment has been mobilised, while the second phase of equipment mobilisation has started, while the construction of the ore haul road and platforms have also commenced.
Chaarat is still advancing project financing discussions with several international groups, and expects to finalise project financing by either the end of 2019 or early 2020.
"We are pleased to report further improvements across a number of operational points at the Kapan mine. From improved development and more tonnes from underground, to increased recoveries at the plant, we are getting this operation to run near its full potential, in time to benefit from the higher gold price," said Chief Executive Officer Artem Volynets.
Shares in Chaarat Gold were down 2.6% at 37.20 pence on Monday in London.
By Dayo Laniyan; [email protected]
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