8th Sep 2022 12:05
(Alliance News) - Chaarat Gold Holdings Ltd on Thursday reported a swing to interim loss due to inflation, while revenue climbed. It also exercised its discretion to waive for a mandatory offer by a Bermuda-based investment company.
Shares were up 8.6% at 10.30 pence each on Thursday afternoon in London.
For the six months that ended June 30, the gold miner with operations in Armenia and assets in Kyrgyzstan said it swung to a pretax loss of USD1.5 million from a profit of USD3.5 million a year prior, citing inflation and an adverse Armenian dram AMD against the USD exchange rate for the swing.
Revenue, however, rose 4.7% to USD50.4 million from USD48.1 million, reflecting "stronger commodity prices and a higher volume of own ore sales," Chaarat Gold explained.
Production amounted to 25,118 ounces of gold equivalent during the period, up from 22,909 ounces a year ago.
Chief Executive Officer Mike Fraser said: "Kapan made good operational progress in the first half of 2022 despite mining in narrower vein areas which had an impact on grade. Financial performance was impacted by lower realised commodity prices, higher energy and raw materials cost and a higher AMD compared to the USD."
Adjusted earnings before interest, tax, depreciation and amortisation plunged to USD4.9 million from USD7.8 million. "The decrease in adjusted Ebitda was mainly driven by cost inflation seen across the mining sector globally," the company explained.
The Kapan mine in Armenia production totalled 30,562 gold equivalent ounces during the period, down 8.1% from 33,248 ounces the previous year.
But Chaarat Gold maintained full-year Kapan production guidance of 56,000 to 62,000 ounces.
Separately, Chaarat Gold said it waived the requirement of a mandatory offer from Labro Investments Ltd upon the acquisition of 7.5 million shares.
By Xindi Wei; [email protected]
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