(Alliance News) - Scotgold Resources Ltd on Wednesday reported a jump in annual revenue but suffered a widened loss, as it also lowered its production forecast.
Scotgold is a Stirlingshire-based gold and silver explorer and producer in Scotland.
Shares were down 12% at 52.18 pence each on Wednesday in London.
In the financial year that ended June 30, revenue rose to AUD17.9 million from just AUD299,807 a year before. Profit from production operations amounted to AUD3.2 million, compared to none the year before.
However, Scotgold's pretax loss doubled to AUD10.8 million from AUD5.0 million.
Administration costs doubled to AUD2.0 million from AUD1.1 million, and the company booked a loss on settlement of loan of AUD1.4 million in financial 2022, versus no such hit the year before. More importantly, Scotgold took at AUD5.9 million hit from depreciation and loss on disposal of non-current assets, versus a AUD1.3 million such charge the year before.
Chief Executive Officer Phil Day said: "It has been a year of transformative progress as we continue to ramp up production at our Cononish gold mine in Scotland towards Phase 2 mining, to achieve a yearly run rate of 23,500 ounces of gold in 2023.
"We were delighted to achieve Phase 1 mining in [first quarter] and subsequently to announce the significant milestone of commercial production on June 30 after three consecutive months of positive operating cashflow, and continue to operate as a cash generative mining operation with buoyant gold concentrate sales."
Scotgold lowered its production forecasts for the quarter to December at its Cononish gold and silver mine.
Due to changes in the short-term mining schedule and worse-than-expected weather conditions in December, it now expects 2,000 ounces of gold. This is down from a previous range of 3,000 to 3,500 ounces.
Day added: "Whilst it is disappointing to report that Q4 2022 production guidance will be missed, I am firm in my belief that it is not material in terms of near-term development of Cononish and realising Phase 2/full production in 2023 as planned."
By Xindi Wei, Alliance News reporter
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