26th Sep 2019 13:16
(Alliance News) - China Nonferrous Gold Ltd's shares rose on Thursday as the miner reported it is confident of meeting its annual production target after becoming a gold producer in the first half.
The stock was trading 26% higher at 20.86 pence each in London on Thursday afternoon.
The company's Pakrut gold project in Tajikistan became fully operational in the first half and China Nonferrous said 300,000 tonnes of ore was extracted from the asset in the six months to June 30. The firm added that it processed 309,600 tonnes at an average grade of 2.1 grammes per tonne and a processing recovery rate of 89%.
Turning to its numbers, China Nonferrous generated a revenue of USD20.9 million compared to none in the first half of 2018. This was attributed to the 15,557 ounces of gold ingots it sold during the period.
Its pretax loss widened to USD9.3 million from USD3.4 million with expenses rising sharply to USD6.3 million from USD2.2 million. China Nonferrous also registered finance costs of USD9.8 million in comparison to none in the first half of last year.
Chief Executive Yu Lixian said: "From 2019 the gold price began to rise. Especially after May 2019, the gold price increased significantly, which also brought good benefits to the group."
China Nonferrous reiterated its production target of 660,000 tonnes of ore for 2019.
Yu Lixian added: "In addition, with the implementation of a series of measures to reduce costs and increase efficiencies including the technical renovation of the carbon in leach, the production capacity could be improved and the associated outputs and benefits could be increased and improved.
"The group has also established a strong relationship with the government of Tajikistan and other central Asian countries and the directors believe the company is well positioned to make acquisitions of more gold resources and gold mines in the future."
By Eric Cunha; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
CNG.L