Last checked at 3 Jul 2020 16:28
The following amendments have been made to the 'Update on Reporting Timetable' announcement released on 29/06/2020 at 11:28am.
“The Company’s loans remain in excess of US$109 million” has been replaced, for clarification purposes, with the following: “At the current time, loans drawn down by the Company amount to c. USD$341 million, this includes US$104m of banking facilities (unaudited).”
All other details remain unchanged. The full amended text is shown below.
China Nonferrous Gold Limited 中国有色黄金有限公司
(“CNG” or the “Company”)
Trading Update
Update on Reporting Timetable
China Nonferrous Gold Limited 中国有色黄金有限公司 (AIM: CNG), the mineral exploration and mining company currently mining the Pakrut gold project in the Republic of Tajikistan, announces a trading update for the year ended 31 December 2019 in advance of the release of the Company’s final results.
The Company is progressing the audit process but due to the challenges of COVID 19, and pursuant to Inside AIM (26 March 2020) the Company has been granted an extension to the date by which its annual accounts can be published. The new deadline by which the annual accounts must be announced is 30 September 2020, however the Board intend to publish and file these accounts on or before 31 July 2020. The Company has also received confirmation that this extended timetable is permitted under the relevant legislation in the Cayman Islands, where the Company is incorporated.
Background
The Pakrut gold mine entered production and full operation in 2019, which saw the Company transform from developer to producer.
The Company made significant achievements in 2019 and became an important Gold-production enterprise in Tajikistan. Pakrut gold mine achieved its internal production targets for 2019, which brings steady cash flows to support the sustainable development of the Company.
Post close trading update
As previously announced, since the end of the period under review, the Company drew down US$14.50 million on a US$30 million loan facility with China Construction Bank (Asia) Corporation Limited, all of which is being used for general working capital at the Pakrut gold mine.
The Company commenced full production in January 2020, and production continues at site despite COVID-19. This generates important cashflows for the Company. However, as previously disclosed in order to meet the repayment dates of certain existing loans, a broader refinancing is required. Discussions are ongoing and are positive and the Company expects to complete these shortly.
Operational update
Through the joint efforts of company staff, the construction works at the Pakrut gold project were successfully completed in 2018, and full production commenced in 2019.
From January to December 2019, a total of 731,600 tons of ore was extracted from Pakrut gold mine, and a total of 690,300 tons of ore were processed at a grade of 2.15 g/t; 17,966 tons of gold concentrate were produced at the grade of 73.73 g/t; and 1,168 kg of gold bullion were poured with comprehensive recovery rate of 79.6%.
Full production continued at the start of 2020 despite COVID-19, and from January to April 2020, 218,360 tons of ore were processed at a grade of 2.43 g/t; the recovery rate of processing was 93%; the recovery rate of smelting was 85.5%, and 261.68kg gold ingots were sold.
CNG’s cash position has improved year on year following the full production and continued refinancing. Prime operating revenues are approximately USD$49.15 million for the twelve month period ended 31 December 2019 (unaudited) and the Company’s cash balance at the date of the announcement is cUSD$22 million, US$5 million of which will be used to repay the loan by 30 June 2020. At the current time, loans drawn down by the Company amount to c. USD$341 million, this includes US$104m of banking facilities (unaudited).
COVID-19
With COVID-19 spreading globally, our priority is the safety and health of our people and ensuring the normal activity of the Company’s operations. Since the outbreak of COVID-19 in Tajikistan on April 30 2020, the Company has taken appropriate steps and effective measures to ensure that staff at protected at site, but to date operations at the mine site at Pakrut continue as normal, and there are no confirmed COVID 19 cases and suspected cases in the Company in either Tajikistan and China.
Looking ahead to FY2021 and beyond, Yu Lixian, CEO of CNG, said:
“With steady state production at the Pakrut gold mine, the Company is confident of achieving the 2020 production target of 680,000 tons of ore at site, which was its internal forecast for the year.
The Company continues to enhance its production capacity and focuses on perfecting and improving the smelting process by reducing production costs, increasing recovery rates and improving competitiveness.
The uncertainty created by the coronavirus pandemic on global markets, and therefore on the production and operation at Pakrut still exists. However, the Company has implemented effective pandemic prevention and control, and is confident in the procedures it has put in place to mitigate these risks. Further details of our operations will be set out in our annual report and accounts which will be published in due course.”
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
Katy Mitchell/James Sinclair-Ford
Tel: 0207 220 1666
Blytheweigh
Tim Blythe, Camilla Horsfall
Tel: +44 (0)20 7138 3224
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