TIDMCNG
China Nonferrous Gold Limited ??????????
('CNG' or the 'Company')
Interim Results for the Six-Month Period Ended 30 June 2019
China Nonferrous Gold Limited (AIM:CNG), the gold producer with
the operational Pakrut Gold Project ('the Pakrut Project') in the
Republic of Tajikistan, today announces its interim results for the
six-month period ended 30 June 2019.
The results below are available on the Company's website at
www.cnfgold.com.
Highlights
-- From January to June 2019, a total of 300,300 tons of ore was
extracted from the Pakrut gold mine; 309,600 tons of ore was
processed; and 15,557.04oz gold ingots was poured
-- From January to June 2019, the Group sold 15,557.04oz of gold ingots,
achieving sales revenue of US$20.881 million
-- the Group intends to carry out a technical renovation of the carbon in
leach ("CIL") process and equipment; an optimization of the
current
mining methods used by the Group; a review of the local staff ;
and
will review other matters to seek to reduce costs and
increase
efficiencies at site.
For further information please visit the Company's website
(www.cnfgold.com) or contact:
China Nonferrous Gold Limited
Yu Lixian, Managing Director
Tel: +86 10 8442 6681
WH Ireland Limited (NOMAD & Broker)
Katy Mitchell, James Sinclair-Ford
Tel: +44 (0)207 220 1666
Blytheweigh (PR)
Tim Blythe, Camilla Horsfall
Tel: +44 (0)20 7138 3224
Project Summary
The Pakrut Gold Project, of which CNG has 100 per cent
ownership, is situated in Tajikistan approximately 120km northeast
of the capital city Dushanbe. Pakrut is located within the Tien
Shan gold belt, which extends from Uzbekistan into Tajikistan,
Kyrgyzstan and Western China, and which hosts a number of
multi-million ounce gold deposits.
CNG has entered the stage of steady state production.
About Tajikistan
Tajikistan is a secular republic located in Central Asia. The
country is a member of the Commonwealth of Independent States and
the Shanghai Cooperation Organisation. Tajikistan hosts numerous
operating precious metal mines as well as the largest aluminum
smelter in Central Asia. CNG's management team has extensive
experience in the mining industry in Tajikistan.
CEO's Statement
As CEO of the board, it gives me great pleasure to present the
CEO's statement of the Interim Results for the Six-Month Period
Ended 30 June 2019. Following the successful trial production in
2018, the Pakrut gold mine entered steady state production and full
operation in 2019, making the Group a gold producer.
From January to June 2019, a total of 300,300 tons of ore was
extracted from the Pakrut gold mine During that same six month
period:
-- 309,600 tons of ore was processed;
-- the average grade of the raw ore was 2.10g/t;
-- the recovery rate of processing was 87.85%;
-- 11,480 tons of concentrate was produced from the processing plant; and
-- 8,210.7 tons of concentrate among them was treated in the smelter (the
recovery rate of smelting was 88.82%) and 15,557.04oz gold
ingots were
poured.
From 2019, the gold price began to rise, especially after May
2019, which has benefited the Group. From January to August 2019,
the Group sold 20,907.53oz of gold ingots, achieving sales revenue
of US$27.87million (unaudited), with an average sales price of
US$1,333.10 / oz.
Going forward, the Group intends to carry out a technical
renovation of the carbon in leach ("CIL") process and equipment; an
optimization of the current mining methods used by the Group; a
review of the local staff ; and will review other matters in order
to reduce costs and increase efficiencies at site.
Financial Results
The Company continued its development and construction work
during the first six months of 2019, Administration expenditure was
US$8,164,099(30 June 2018: US$2,179,000). The big increase was due
to the depreciation of the property, plant and equipment, more
details of which are set out in note 5 below. The operating profit
for the Group was US$278,000 (30 June 2018: loss US$3,363,000).
Total cash equivalents at the end of the period for the Group
amounted to US$16,147,939 (30 June 2018: US$61,896,000). As at 30
June 2019, there was a net liability of $1,363,000 (30 June 2019:
net assets of $9,318,000). The net liability position has arisen
due to CNG's Pakrut project entering into production from 1 January
2019, therefore the expenses relating to the project have not been
capitalized but instead have been expensed, which includes
borrowing costs. It is expected that after the production stage has
stabilized, the associated increase in sales revenue will alleviate
the negative net asset position.
To date the Group has been reliant on support from its major
shareholder, CNMC, and its associates. In January 2019, the Group
drew down US$20 million on a US$100 million loan facility with
China Construction Bank Corporation Macau Branch.
The Group commenced production in January 2019 and accordingly
is now cash generative. As mentioned in previous announcements, in
order to facilitate the repayment of existing loans, a broader
refinancing package will be required. Discussions are ongoing and
further updates will be provided in due course .
Outlook
With the normal production and operation of Pakrut gold mine
restored, the Group remain confident of achieving the production
target of 660,000 tons of ore set at the beginning of this year. In
addition, with the implementation of a series of measures to reduce
costs and increase efficiencies including the technical renovation
of CIL, the production capacity could be improved and the
associated outputs and benefits could be increased and
improved.
The Group has long been dedicated to becoming a significant gold
producer in Central Asia and participating in the "Belt and Road
Initiative" with the substantial support and advantages of major
shareholders. 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,
so as to create greater benefits for our shareholders in the
future.
I would like to take this opportunity to thank all our
employees, management and advisors for their continued efforts in
2019 and thank our shareholders for their continued support. I very
much look forward to updating our shareholders further on the mine
developments, production levels, new strategy and direction.
Yu Lixia
CEO
26 June 2019
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190925006032/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
September 26, 2019 02:33 ET (06:33 GMT)
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