The Scotgold Resources Ltd (LON: SGZ) share price rose 15.2% after releasing its financial results for the six months to 31 December 2022. The Scottish gold producer revealed that it produced 3,809 ounces of gold during the six months and generated revenues worth £5.4 million (A$9.5m).Â
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The company sold 550 tonnes of gold concentrate to its off-take partner via concentrate shipments. The firm also sold its first batch of gold doré sales to jewellery companies in December 2022 for £25,420.
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Despite generating revenues worth A$9.5m in H1 2023, Scotgold Resources still reported a loss before tax of a similar amount. The company had A$67,000 in cash at the end of December 2022 and had net debt of A$25.0 million.
Scotgold Resources noted that it had achieved several crucial milestones during the review period and was still advancing Scotland’s first commercial gold mine (its Connonish mine) towards full production.
The company implemented multiple initiatives for its underground mining operations and the processing plant for smooth operations. The firm upgraded the power and ventilation systems at its underground mine while de-bottlenecking the processing plant to enhance floatation and tailings filtration.
Completing the underground mine allowed Scotgold to focus on driving its first stope mining area during the period ahead of the planned date in calendar Q2 2023. The company also opened the mine for further development drives in late 2023 after inclining the 445 level.
Scotgold also started limited resource definition and grade control drilling in October 2022, providing essential information for the correct design and shape of stopes. The company aims to have higher certainty in grade prediction for its 2023 mine plan as it transitions to long-hole stoping from development tunnelling.
The Scottish gold mining company also raised £3.0m (US$3.6m) by issuing 7,428,460 new Ordinary Shares at 40p each on 9 February 2023, capitalising it sufficiently to continue funding its operations.
Investors cheered the overall progress made by Scotgold Resources despite the company failing to meet its production targets and incurring a significant loss.
*This is not investment advice.
Scotgold Resources share price.
The Scotgold Resources share price rose 15.19% to trade at 15.55p, from Wednesday’s closing price of 13.50p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.