Chaarat Gold Production Fell in 3Q But On Track to Meet Guidance — Commodity Comment – MarketWatch
By Jaime Llinares Taboada
Chaarat Gold Holdings Ltd. on Friday reported lower production and higher costs for the third quarter of 2021, reflecting lower grades and fleet availability in July. However, the owner of the Kapan gold mine in Armenia remains on track to meet full-year production guidance. Here’s what the London-listed company had to say.
On the Kapan mine:
“Following the strong H1 2021 results, July 2021 was impacted by lower grades and fleet availability. Performance improved in August and returned to run-rate performance in September.”
“Chaarat is on track to meet the production guidance of 57koz1 for 2021, which will rely on a steady source of third-party ore supply for the remainder of 2021.”
“Production of 13,224 gold equivalent ounces (“oz”) vs 15,547 oz in Q3 2020 (-14.9%) as a result of lower mine rates in the mine plan and lower than expected grades.”
“All-in-sustaining cost (“AISC”3) of USD1,366 /oz vs USD1,192 /oz in Q3 2020 (+14.6%) mainly driven by the lower produced ounces in July and August.”
“Preliminary unaudited standalone EBITDA contribution of USD2.6 million vs USD6.4 million in Q3 2020 (-60%) with the reduction due to management’s decision to delay sales pending discussions with the Government of Armenia on their new metals export regulation and application to specific concentrate sales as well as the above-mentioned factors around the mine performance.”
On Kyrgyz Republic exploration projects:
“2021 drilling programmes completed with Kyzyltash results published and Tulkubash results expected in November 2021.”
“Kyzyltash core sample selection is underway in preparation for shipment to SGS Canada Inc for metallurgical testwork to commence later this quarter.”
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT
