(Alliance News) - Scotgold Resources Ltd shares surged on Thursday, despite a widening loss in the first half, as it reported "progress" at its Cononish mine.
Scotgold shares rose 25% to 16.88 pence each in London on Thursday afternoon.
Scotgold is a Stirlingshire, Scotland-based gold and silver exploration company, primarily focused on developing the Cononish gold and silver mine in the Scottish highlands.
Its pretax loss was AUD9.5 million, around GBP5.2 million, in the first six months to December 31, widening from AUD5.6 million in 2021. The basic loss per share was 14.89 Australian cents each, widening from 9.6 cents a year ago.
The company reported revenue was AUD9.5 million, increasing 48% from AUD6.4 million the year prior. The company noted that it "has seen progress and important milestones" achieved at Cononish, as it develops Scotland's first commercial gold mine.
The company said its revenue was generated from the sale of 550 tonnes of concentrate shipments to its off-take partner.
Scotgold noted that net debt at December 31 was AUD25.0 million.
Scotgold is currently in discussions with its off-take partner to secure a USD500,000 advance to assist with short-term working capital, after gold grades declined "significantly" at the 430 West ore drive in February and March.
In February, the company raised GBP3.0 million, to fund its transition from tunnel development minding to long hole stoping.
By Harvey Dorset, Alliance News reporter
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