Proactive Investors - Run By Investors For Investors

Chaarat Gold hails “year of transformation” in 2018 as it moves to producer from developer

The acquisition of the Kapan mine has transformed the firm into a producer "in a single step" while drilling at Tulkubash in 2019 is expected to yield successes similar to those in 2018
Gold pieces
Chaarat added over 650,000 ounces of gold in 2018 to its resource at Tulkubash

Chaarat Gold Holdings Limited (LON:CGH) shares rose on Wednesday as the firm hailed a “year of transformation” for 2018 as it kicked off its current year by transforming from a developer to a producer.

Over 2018, the AIM-listed miner said it added over 650,000 ounces of gold to the Measured and Indicated (M&I) Resource at its Tulkubash project in the Kyrgyz Republic, taking the total M&I to more than 1.6mln ounces.

WATCH: Chaarat Gold makes strong start to 2019 exploration programme at Tulkubash

Martin Andersson, executive chairman of Chaarat, said a drilling programme at Tulkubash planned for the current year was expected to have “similar rates of success” to those in 2018.

Chaarat had also secured US$120mln in financing during 2018 and the first half of 2019 with “minimal dilution to shareholders”.

Post-period, the company said its acquisition of the Kapan mine in Armenia had transformed it from a developer to a producer “in a single step”.

Anderson added that an almost 40% year-on-year increase in the gold reserves of Tulkubash had demonstrated “remarkable future growth potential” for the project.

In the figures for 2018, Chaarat reported an operating loss of US$13.7mln, lower than the US$16.6mln loss in the prior year, while it ended the 12 months with a cash balance of £1.17mln.

In afternoon trading, Chaarat shares were 4.6% higher at 29.80p.

 -- Updates share price --

View full CGH profile View Profile

Chaarat Gold Holdings Ltd Timeline

Related Articles

Drill rig
November 20 2018
The gold exploration and development company is focused on Mali and Ghana in West Africa
A gold pour
February 19 2019
At the Santana project, the group s now awaiting final permit approval for commercial operations
April 15 2019
Thor has just secured US$54mln in senior debt financing for the development of the Segilola project in Osun state, approximately 120 kilometres north of Lagos

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use