The Chaarat Gold Holdings Ltd (LON: CGH) share price plunged 27.5% after releasing the financial results for the full year ended 31 December 2022. The company generated revenues worth US$92.3 million during the year, similar to the US$92.4 million it made in 2021.
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The AIM-listed gold mining company with an operating mine in Armenia and assets at various stages of development in the Kyrgyz Republic noted that US$76.6 million came from its ore, with US$15.7 million being third-party revenue. The revenue split improved on the US$72.8 million own ore and US$19.6 million third-party revenue recorded in 2021.
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The gold mining company’s pretax profits were US$6.5 million, a 52% decline from last year’s US$13.5 million pretax loss. The company also revealed that its loss after tax increased to US$8.6 million, marking a US$5 million increase from the US$3.6 million loss recorded in 2021.
Chaarat Gold’s cash and cash equivalents fell from US$11.1 million in 2021 to US$0.6 million at the end of 2022. The company’s net debt increased from US$39.6 million to US$51.3 million due to decreased cash and cash equivalents during the year.
The company noted that its Kapan operations produced 62.8 thousand gold equivalent ounces (AuEq koz) versus its 2022 production guidance of 56-62 koz, beating its expectations. The concentrate contained 50.0 koz from its ore and 12.8 koz from third-party ore production.
Mike Fraser, Chaarat Gold’s CEO, commented: “Our 2022 financial results reflect the challenging environment in Armenia, with the 23% appreciation of the Armenian Dram rate resulting in a decrease in Group EBITDA of 52% compared to 2021… Nevertheless, Kapan exceeded our 2022 production guidance, and I would like to congratulate the team on keeping the mine profitable in a challenging environment. It was disappointing that we were not able to secure a funding solution for our Tulkubash development project during the year. However, we continue our efforts to do so and, in particular, looking towards alternative project finance options.”
*This is not investment advice.
Chaarat Gold share price.
Chaarat Gold share price plunged 27.47% to trade at 8.45p, from Wednesday’s closing price of 11.65p.
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