Chaarat Gold Holdings Ltd (AIM:CGH) said the war in Ukraine had a “minimal impact” on its operations in Armenia and the Kyrgyz Republic in the first quarter of 2022.
Ore mining at its Kapan Mine in Armenia grew 9.8% compared to the year prior at 163,652 tonnes, although total production of 15,266 gold equivalent ounces (oz) was down 6.9% on last year due to “reduced-party processing and lower grade ore”.
The company said Kapan “remains on track” to deliver guidance of gold equivalent 56,000oz to 62,000oz for the year, including third-party ore production.
Kapan contributed US$7.6mln to underlying earnings (EBITDA), a 10.1% increase on the first quarter of 2021.
Chaarat also produced 138,257oz of silver, 481 tonnes of copper and 1,492 tonnes of zinc at Kapan in the first quarter.
“Kapan continues to operate on a steady state basis with the team focusing on value, not just volume, and managed to increase utilisation of equipment and efficiency,” said Chaarat chief executive Mike Fraser.
Chaarat also said it recommenced financing discussions on the Tulkubash project following an agreement between the government of the Kyrgyz Republic and Centerra Gold over the Kumtor mine.
London-listed Chaarat was therefore able to update the mineral resource and reserve statements for Tulkubash, which are on track to be released in the second quarter.
Metallurgical test work on the Kyzyltash drill core is currently underway, with results on track for the third quarter of the year, enabling an economic assessment to take place next year.
Net debt currently stands at US$42.5mln. The company said the principal outstanding for the Kapan acquisition loan was reduced by US$2.8mln in January.