Scotgold Resources Limited (AIM:SGZ) said it is confident of continued growth in its current financial year after it made “significant” progress at the Cononish Gold and Silver Mine in Scotland in the year ended 30 June 2021.
The company is targeting production at Cononish of 23,500oz per year run rate of gold by the first quarter of 2023.
The phase 1 ramp up of the mine is due to be completed at the end December this year. Production in November and December was in line with management's targets, Scotgold said in a statement.
Gravity gold production remains on track with a delivery to the refiners completed this month, it added.
Scotgold said it has consistently achieved production revenues that exceed operational costs since August this year, while December production currently “looks to be another step change higher than previous months”.
It said it will make an operational and strategy update in January with Cononish optimisation initiatives for 2022 and production guidance.
Scotgold Resources CEO Phil Day said: "I'm excited for 2022 and I'm confident it will be a year of continued growth for the company. I would like to thank the team for their commitment and dedicated work, our local community, government partners and shareholders for their continued support and look forward to updating the market in the New Year with our 2022 strategy."
The company reported revenue of £299,807 for the year to June 2021. Pre-tax losses were £4.98mln compared with £2.5mln the year before.
Shares rose 2.38% to 64.50p.