Our latest Investing Matters Podcast episode with QuotedData's Edward Marten has just been released. Listen here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksSGZ.L Share News (SGZ)

  • There is currently no data for SGZ

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Scotgold upbeat on bumper fourth quarter production

Fri, 14th Jan 2022 14:40

(Sharecast News) - Scotgold Resources updated the market on fourth quarter operations at its Cononish Gold and Silver Mine in Scotland on Friday, as it targeted a run rate of gold of 23,500 ounces by the end of the first quarter of 2023.
The AIM-traded firm said production in the three months ended 31 December totalled 1,508 ounces of gold, with the company recording its highest gold concentrate production since first pour in December, with 101 tonnes of concentrate produced, equating to about 700 ounces of contained gold.

That was a 60% increase on its previous best monthly concentrate production.

November production was negatively impacted by Covid-19-related supply of explosives for the mine, with the short-term issue resolved in November, and ore extraction now continuing in line with its mine plan.

Fourth quarter gold concentrate and shipments totalled 231.5 tonnes, with a sales value of over £2.6m.

Scotgold said the phase one ramp-was up nearly completed by the end of the quarter, with the processing plant achieving a feed rate of 2,500 tonnes for the month of December.

Looking at its current operations, Scotgold guided first quarter gold production of between 1,400 and 2,200 ounces.

Low capital expenditure optimisation initiatives, primarily the addition of a thickener into the tailings circuit, were underway to achieve an optimisation phase production run rate of 16,000 to 17,500 ounces per annum, the board said.

The second, or expansion, phase was targeted for the first quarter of 2023, to achieve a 23,500 ounces run rate of gold per annum.

Scotgold said its 2022 strategy was focussed on continuing to optimise the Cononish processing plant and mining efficiencies to increase the production profile while building a multi-asset gold production company in Scotland through targeted exploration.

The company said it had renegotiated the tranches of the Bridge Barn Loan that were repayable in 2022, with an additional loan of £0.5m to provide buffer through the first quarter of 2022 short-term mine plan grade variability.

"I'm delighted to report on our record-breaking gold concentrate production in December, which saw a 60% increase in production from our previous record month," said chief executive officer Phil Day.

"Our 2021 initiatives to increase production efficiencies and ramp-up production are working.

"It has taken hard-work, dedication, extensive planning and committed teamwork to transform our mining operations during the past nine months since I joined as CEO."

Day said that, like a number of mines globally, the company had endured "significant" pandemic-related disruptions, with many people infected or isolating repeatedly, along with significant challenges with its supply chains.

"I'm honoured to be leading such an exceptional team here in Scotland and the UK who have worked tirelessly during these difficult times, with conviction to deliver.

"We have almost completed phase one ramp-up production, and we continue to be cash generative as our production revenues exceed operational costs.

"We forecast that this cash generation will continue during 2022 as we increase the production profile firstly to 4,000 feed tonnes by the second quarter of 2022, and then 4,500 feed tonnes by the fourth quarter, and up to 23,500 ounces of gold run rate per annum by the end of the first quarter of 2023."

Phil Day said that would allow the company to develop the mine, increase its resources, continue exploration, and drive "significant" shareholder value.

"Scotgold has negotiated a newly restructured debt agreement with its original debt provider Bridge Barn which affords us continued operational flexibility for growth and expansion by removing the need to repay tranches one and two plus interest, in 2022.

"We will continue to update the market on Cononish's progress through quarterly production and sales reports which is in line with standard reporting for listed gold producers and corporate and exploration updates."

At 1315 GMT, shares in Scotgold Resources were up 8.15% at 73p.
More News
24 Nov 2023 10:41

Scotgold Resources says administrators have assumed control of company

(Alliance News) - Scotgold Resources Ltd on Friday said administrators have assumed control of the company, as it previously indicated would happen on Wednesday.

Read more
22 Nov 2023 10:38

IN BRIEF: Scotgold Resources to appoint administrators in Australia

Scotgold Resources Ltd - Stirlingshire, Scotland-based gold and silver explorer - Considers appointing administrators in Australia. The company's only substantive assets are its holdings in SGZ Cononish Ltd and SGZ Grampian Ltd. Expects to proceed with an administration process for SGZ Cononish "soon". Meanwhile, the secured creditor over the assets of SGZ Cononish, Bridge Barn, has informed Scotgold it will enforce its rights over the shares held by Scotgold in SGZ Grampian. Scotgold shares have been suspended from trading on AIM since September 11.

Read more
8 Nov 2023 12:02

IN BRIEF: Scotgold director steps down ahead of administration

Scotgold Resources Ltd - Stirlingshire, Scotland-based gold and silver exploration company - Says Nathaniel le Roux resigns as director of the company and its subsidiaries, after almost ten years, effective immediately as the company heads toward administration. Says it is now evaluating its position to "consider all options" available to the company and subsidiaries. le Roux is the major-secured creditor of subsidiary SGZ Cononish Ltd.

Read more
7 Nov 2023 17:47

TRADING: Zambeef sees profit above market views; Luceco trades in line

(Alliance News) - The following is a round-up of earnings and trading updates by London-listed companies, issued on Tuesday and not separately reported by Alliance News:

Read more
16 Oct 2023 15:48

Scotgold Resources in advanced discussions with new investor

(Alliance News) - Scotgold Resources Ltd on Monday said it is now in discussions with a new strategic investor, after losing its "most advanced" investor at the start of October.

Read more
2 Oct 2023 11:52

Scotgold Resources "most advanced" prospective investor pulls out

(Alliance News) - Scotgold Resources Ltd on Monday said its "most advanced" prospective investor has withdrawn from discussions, meaning it is now considering its strategic options, including the potential of appointing administrators over the coming days.

Read more
19 Sep 2023 18:38

IN BRIEF: Scotgold seeks fresh funding to develop Cononish mine

Scotgold Resources Ltd - Stirlingshire, Scotland-based gold and silver exploration company - Updates on the mining plus review of the Cononish mine plan for the next twelve months. Says while the company further stated that while the geological data and documentation suggested "no fatal flaws" in the mineral resource estimate and grade control modelling process, the draft mine plan and associated cash flow forecasts are currently being reviewed by the company, but they indicate that to deliver to the plan, a significant capital investment is required.

Read more
11 Sep 2023 18:17

TRADING UPDATES: Avation enters new lease for Airbus A320 with Cebu

(Alliance News) - The following is a round-up of updates by London-listed companies, issued on Monday and not separately reported by Alliance News:

Read more
10 Jul 2023 10:17

Scotgold Resources begins review of mine after disappointing half

(Alliance News) - Scotgold Resources Ltd on Monday withdrew its full-year guidance as it began a third-party review of the Cononish mine plan for the next 12 months, following a "disappointing" first half of 2023.

Read more
7 Jun 2023 12:57

IN BRIEF: Scotgold appoints CFO Sean Duffy as interim CEO

Scotgold Resources Ltd - Stirlingshire, Scotland-based gold and silver exploration company - Appoints Sean Duffy, its chief financial officer and board director, as interim chief executive officer. Duffy will take on the role immediately, whilst remaining as CFO. This follows the resignation of Phil Day last Thursday, who left the role "to spend more time with his family". At the time, Scotgold said it was "reluctantly" accepting Day's resignation.

Read more
1 Jun 2023 12:21

Scotgold Resources CEO resigns; will begin replacement process

(Alliance News) - Scotgold Resources Ltd on Thursday said Chief Executive Officer Phil Day has resigned to spend more time with his family.

Read more
15 May 2023 14:37

IN BRIEF: Scotgold raises GBP1.5 million in share offer

Scotgold Resources Ltd - Stirlingshire, Scotland-based gold and silver exploration company, primarily focused on developing the Cononish gold and silver mine in the Scottish highlands - Raises GBP1.5 million via a share subscription for 10.1 million open offer shares.

Read more
21 Apr 2023 11:18

Scotgold announces fundraise as stoping transition progresses

(Sharecast News) - Commercial gold producer Scotgold Resources announced on Friday that the transition to the long hole stoping mining method at its Cononish mine was progressing well, and was in line with its mine plan.

Read more
21 Apr 2023 09:51

Scotgold starts GBP2 million placing as Cononish progresses smoothly

(Alliance News) - Scotgold Resources Ltd on Friday said it will raise additional funds via a share subscription and open offer, following encouraging progress at the Cononish gold mine in Scotland.

Read more
5 Apr 2023 12:19

Scotgold secures USD500,000 advance from gold off-take partner

(Alliance News) - Scotgold Resources Ltd on Wednesday said it has secured a USD500,000 advance to assist with its short-term working capital from its gold offtake partner.

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.