TIDMCGH
RNS Number : 2976A
Chaarat Gold Holdings Ltd
28 September 2015
Chaarat Gold Holdings Limited
("Chaarat" or "the Company")
INTERIM STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2015
Road Town, Tortola, British Virgin Islands (28 September
2015)
Chaarat (AIM - CGH), the AIM quoted exploration and development
company with assets in the Kyrgyz Republic, today publishes its
unaudited results for the period ended 30 June 2015. Chaarat is
preparing a Definitive Feasibility Study (DFS) and continuing its
active community engagement programme to optimise the value of the
Chaarat investment proposition.
HIGHLIGHTS
-- Solid progress to production as the DFS edges towards completion
-- Public hearings process successfully completed - local
communities support the Chaarat Project
-- Sterilisation work completed at site
-- Recruitment of production focussed Chaarat team underway
Dekel Golan, Chief Executive Officer of Chaarat, commented:
"The challenges of bringing the Chaarat Project to production
cannot be ignored but I am excited as I see our plans start to
coalesce. I recently had the pleasure of showing the Chaarat site
to our new analyst at Numis. As he reported on his return to the
UK, "the puzzle is coming together ... the project has significant
flexibility and options to ease the development and funding
pathway". With the continued interest of potential joint venture
partners and outright purchasers, pending the delivery of the DFS,
these are indeed exciting times for one of the largest and best
undeveloped deposits in the world."
Enquiries:
Chaarat Gold Holdings
Limited + 44 20 7499 2612
c/o Central Asia Services info@chaarat.com
Limited
Dekel Golan CEO
Linda Naylor FD
Numis Securities Limited +44 (0) 20 7260 1000
John Prior, Paul Gillam
(NOMAD)
James Black (Broker)
Further information is available at www.chaarat.com
Chief Executive Officer's Report
During the first six months of 2015 we continued to build on the
foundations established in 2014 and devoted our efforts principally
to the work on the Definitive Feasibility Study (DFS).
We provided an update last month on the progress of the DFS.
Following a series of review meetings in China we are working with
NERIN and our team of advisers to implement a number of changes
which should have a significant impact on the economics of the
study. Progress continues to be slow and frustrating and the
process of ensuring compliance with Chinese regulatory standards,
required before the DFS can be signed off, is now suspended until
mid-October, after the end of a period of national holidays in
China. Despite these hurdles, the Board remains convinced that the
effort made now will be rewarded. A robust study will assign a
supportable "value" to the Chaarat Project which, together with our
development plans outlined below, will provide a benchmark value
for negotiations with Chinese investors and prospective buyers.
We have had a number of approaches from Chinese companies
interested in either joint venture arrangements or an outright
purchase of the Project. The DFS, already aligned to Chinese
cultural and economic standards, will be more acceptable to
scrutiny by Chinese entities and provide an indispensable input for
their decision making.
Progress to production
We reaped the reward in early July of our active community
engagement programme and the formation of the Community
Consultation Group. The conclusions from a site visit to the Copler
mine in Turkey by 16 community leaders were fed back to their local
communities and (after allaying numerous concerns, answering
questions and providing clarification) representatives from each of
the local villages in the vicinity of the Chaarat Project voted in
favour of its development at a public hearing. This successful
outcome is an essential milestone in achieving full permitting of
the Project.
In tandem with the work on the DFS for the whole Chaarat Project
we are continuing preparations for production and the detailed
planning for the Stage 1 Tulkubash Project. We have decided to
start development of the Chaarat Project by mining the near surface
free milling low sulphur (non-refractory) ore found in the
Tulkubash Zone first, which can be processed in a heap leach
operation which is less capital intensive and has lower operating
costs.
Detailed design work is underway on the heap leach, the mine and
waste dump. The footprint of the Project is being minimised to cut
capital costs of construction. The access road and internal site
roads are being designed and logistics for the site are being
planned to maximise efficiency. The tender process for the contract
to build the plant and associated structures is underway with site
visits arranged before the winter closes the site. We are working
with the communities and the authorities to finalise the land
allocation for the Project and a local Kyrgyz institute is
preparing the necessary environmental reports for submission to
obtain permits. Sterilisation work, to ensure there are no gold
deposits where we plan to build Project infrastructure, has been
completed.
Prior to seeking finance for the Tulkubash Project, we are
planning to recruit an Operations Director to manage the process to
production and beyond. Interviews and visits to site are underway
in what has been a busy September.
Finance matters
As outlined above, we have since the end of 2014 pushed ahead
with the development of the Project with the objective of achieving
production in 2017, subject to financing. Since we decided to
embark on the preparation of a DFS in 2013, conditions for funding
a mining project have remained challenging. We therefore have to
demonstrate that the Chaarat Project merits a share of the limited
funds available, hence our decision to carry on with the
preparatory work, despite incurring additional costs. In mitigation
we have raised more than USD 2 million to date from the sale of
fixed assets and equipment and the site has been sterilised at no
cost to Chaarat. We continue our efforts to reduce discretionary
expenditure and as a result our closing cash balance at 30 June was
USD 5.2 million. As we begin our efforts to seek funding for the
Tulkubash Project we are encouraged by the relationships that the
Kyrgyz Republic enjoys with Turkey, China and Russia which
increases Chaarat's options for engineering and contractors as well
as financing.
In summary we are developing a solid plan to bring the Chaarat
Project to production; the challenges are being addressed. We are
confident that with the continued hard work of our staff and
patient support of our shareholders the remaining hurdles will be
overcome.
Dekel Golan
Chief Executive Officer
About Chaarat Gold
Chaarat Gold is an exploration and development company operating
in the Kyrgyz Republic with a large, high grade resource - the
Chaarat Gold Project. The Company's key objective is to become a
low cost gold producer generating significant production from the
development of the Chaarat Gold Project. Chaarat is preparing a
Definitive Feasibility Study (DFS) and continuing its active
community engagement programme to optimise the value of the Chaarat
investment proposition.
Chaarat aims to create value for its shareholders, employees and
communities from its high quality gold and mineral deposits in the
Kyrgyz Republic by building relationships based on trust and
operating to the best environmental, social and employment
standard.
Consolidated income
statement
For the six months
ended 30 June
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2015 2014 2014
(unaudited) (unaudited) (audited)
USD USD USD
Exploration expenses (787,523) (1,484,299) (4,251,623)
Impairment of assets - - (6,023,622)
Administrative expenses (1,379,582) (1,753,273) (3,868,516)
- Share options expense (45,436) (120,990) (256,613)
- Foreign exchange
gain/(loss) (24,798) 16,826 (45,242)
------------------------------------- ------------ ------------ --------------
Total administrative
expenses (1,449,816) (1,857,437) (4,170,371)
Other operating income/(expense) 65,449 44,052 (81,257)
------------------------------------- ------------ ------------ --------------
Operating loss (2,171,890) (3,297,684) (14,526,873)
Finance income 26,529 31,612 476,536
Taxation - - 486,875
--------------------------------- ------------ --------------
Loss for the period,
attributable to equity
shareholders of the
parent (2,145,361) (3,266,072) (13,563,462)
------------------------------------- ------------ ------------ --------------
Loss per share (basic
and diluted) - USD
cents (0.79) (1.30) (4.97)
------------------------------------- ------------ ------------ --------------
Consolidated statement
of comprehensive income
For the six months
ended 30 June
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2015 2014 2014
(MORE TO FOLLOW) Dow Jones Newswires
September 28, 2015 02:00 ET (06:00 GMT)
(unaudited) (unaudited) (audited)
USD USD USD
Loss for the period,
attributable to equity
shareholders of the
parent (2,145,361) (3,266,072) (13,563,462)
Other comprehensive
income:
Items which may subsequently
be reclassified to
profit and loss
Exchange differences
on translating foreign
operations and investments (1,311,157) (2,752,373) (8,302,919)
Other comprehensive
income for the period,
net of tax (1,311,157) (2,752,373) (8,302,919)
Total comprehensive
loss for the period
attributable to equity
shareholders of the
parent (3,456,518) (6,018,445) (21,866,381)
---------------------------------- ------------ ------------ ---------------
Consolidated balance
sheet
At 30 June
30 June 30 June 31 December
2015 2014 2014
(unaudited) (unaudited) (audited)
USD USD USD
Assets
Non-current assets
Intangible assets 41,399 73,019 50,197
Mining exploration
assets - 6,803,149 -
Mine properties 22,268,925 23,151,084 22,653,950
Property, plant and
equipment 3,129,417 6,450,722 3,622,423
Assets in construction 11,964,950 13,782,021 12,339,224
37,404,691 50,259,995 38,665,794
----------------------------------- ------------------ ------------------ ------------------
Current assets
Inventories 763,523 1,251,030 847,818
Trade and other receivables 728,884 1,085,444 726,386
Cash and cash equivalents 5,156,510 7,122,223 7,608,865
6,648,917 9,458,697 9,183,069
Total assets 44,053,608 59,718,692 47,848,863
------------------------------------ ------------------ ------------------ ------------------
Equity and liabilities
Equity attributable
to shareholders
Share capital 2,729,353 2,504,778 2,729,353
Share premium 132,108,746 128,551,662 132,108,746
Share warrant reserve 1,358,351 - 1,358,351
Other reserves 15,038,993 15,127,145 15,205,510
Translation reserve (12,131,884) (5,270,181) (10,820,727)
Accumulated losses (96,078,216) (83,904,676) (94,144,808)
------------------------------------ ------------------ ------------------ ------------------
43,025,343 57,008,728 46,436,425
----------------------------------- ------------------ ------------------ ------------------
Non- current liabilities
-------------------------------- ------------------ ------------------ ------------------
Deferred tax - 487,000 -
-------------------------------- ------------------ ------------------ ------------------
Current liabilities
Trade payables 386,181 1,442,676 561,916
Accrued liabilities 642,084 780,288 850,522
------------------------------------ ------------------ ------------------ ------------------
1,028,265 2,222,964 1,412,438
----------------------------------- ------------------ ------------------ ------------------
Total liabilities 1,028,265 2,709,964 1,412,438
------------------------------------ ------------------ ------------------ ------------------
Total liabilities
and equity 44,053,608 59,718,692 47,848,863
------------------------------------ ------------------ ------------------ ------------------
Consolidated statement of changes in equity
For the six months ended 30 June
Share Share Share Accumulated Other Translation
capital premium warrant losses reserves reserve Total
USD USD reserve USD USD USD USD
USD
Balance at
31 December
2013 2,504,778 128,551,662 - (80,646,255) 15,013,806 (2,517,808) 62,906,183
-------------- --------- ----------- ---------- ------------ ---------- ------------ ------------
Currency
translation - - - - - (2,752,373) (2,752,373)
-------------- --------- ----------- ---------- ------------ ---------- ------------ ------------
Other
comprehensive
income - - - - - (2,752,373) (2,752,373)
-------------- --------- ----------- ---------- ------------ ---------- ------------ ------------
Loss for the
six months
ended
30 June 2014 - - - (3,266,072) - - (3,266,072)
Total
comprehensive
income for
the six
months
ended
30 June 2014 - - - (3,266,072) - (2,752,373) (6,018,445)
Share options
lapsed - - - 7,651 (7,651) - -
-------------- --------- ----------- ---------- ------------ ---------- ------------ ------------
Share options
expense - - - - 120,990 - 120,990
-------------- --------- ----------- ---------- ------------ ---------- ------------ ------------
Balance at
30 June 2014 2,504,778 128,551,662 - (83,904,676) 15,127,145 (5,270,181) 57,008,728
-------------- --------- ----------- ---------- ------------ ---------- ------------ ------------
Currency
translation - - - - - (5,550,546) (5,550,546)
-------------- --------- ----------- ---------- ------------ ---------- ------------ ------------
Other
(MORE TO FOLLOW) Dow Jones Newswires
September 28, 2015 02:00 ET (06:00 GMT)
comprehensive
income - - - - - (5,550,546) (5,550,546)
-------------- --------- ----------- ---------- ------------ ---------- ------------ ------------
Loss for the
six months
ended
31 December
2014 - - - (10,297,390) - - (10,297,390)
-------------- --------- ----------- ---------- ------------ ---------- ------------ ------------
Total
comprehensive
income for
the six
months
ended
31 December
2014 - - - (10,297,390) - - (10,297,390)
Share options
lapsed - - - 57,258 (57,258) - -
-------------- --------- ----------- ---------- ------------ ---------- ------------ ------------
Share options
expense - - - - 135,623 - 135,623
-------------- --------- ----------- ---------- ------------ ---------- ------------ ------------
Warrant
expense - - 1,358,351 - - - 1,358,351
-------------- --------- ----------- ---------- ------------ ---------- ------------ ------------
Issuance of
shares for
cash 224,575 3,672,495 - - - - 3,897,070
-------------- --------- ----------- ---------- ------------ ---------- ------------ ------------
Share issue
cost - (115,411) - - - - (115,411)
-------------- --------- ----------- ---------- ------------ ---------- ------------ ------------
Balance at
31 December
2014 2,729,353 132,108,746 1,358,351 (94,144,808) 15,205,510 (10,820,727) 46,436,425
-------------- --------- ----------- ---------- ------------ ---------- ------------ ------------
Currency
translation - - - - - (1,311,157) (1,311,157)
-------------- --------- ----------- ---------- ------------ ---------- ------------ ------------
Other
comprehensive
income - - - - - (1,311,157) (1,311,157)
-------------- --------- ----------- ---------- ------------ ---------- ------------ ------------
Loss for the
six months
ended
30 June 2015 - - - (2,145,361) - - (2,145,361)
-------------- --------- ----------- ---------- ------------ ---------- ------------ ------------
Total
comprehensive
income for
the six
months
ended
30 June 2015 - - - (2,145,361) - (1,311,157) (3,456,518)
Share options
lapsed - - - 211,953 (211,953) - -
-------------- --------- ----------- ---------- ------------ ---------- ------------ ------------
Share options
expense - - - - 45,436 - 45,436
Balance at
30 June 2015 2,729,353 132,108,746 1,358,351 (96,078,216) 15,038,993 (12,131,884) 43,025,343
-------------- --------- ----------- ---------- ------------ ---------- ------------ ------------
Consolidated cash
flow statement
For the 6 months ended
30 June
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2015 2014 2014
(unaudited) (unaudited) (audited)
USD USD USD
Operating activities
Loss for the period (2,145,361) (3,266,072) (13,563,462)
Adjustments:
Amortisation expense
- intangible assets 6,953 23,346 45,230
Depreciation expense
- property, plant
and equipment 293,314 445,658 1,622,409
(Profit)/loss on disposal
of property, plant
and equipment 45,227 (520,398) 500,319
Impairment of assets - - 6,023,622
Finance income (26,529) (31,612) (475,536)
Share based payments 45,436 120,990 256,613
Foreign exchange (gains)/losses (24,798) (16,826) 45,242
Decrease in inventories 84,295 502,772 905,984
(Increase)/Decrease
in accounts receivable (2,498) (227,540) 131,517
Increase/(Decrease)in
(MORE TO FOLLOW) Dow Jones Newswires
September 28, 2015 02:00 ET (06:00 GMT)
Chaarat Gold (LSE:CGH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Chaarat Gold (LSE:CGH)
Historical Stock Chart
From Jul 2023 to Jul 2024
