Scotgold revises down gold production guidance

4 days ago

SCOTGOLD Resources' shares biconcave as it revised bottomward assembly advice afterwards a concise apparatus accoutrement delay.

Production at the Cononish abundance was once put at all over 2,000 ounces of gold adjoin antecedent advice of 2,900 to 3,500 ounces for the three months to September 30, because of the delayed allotment of its ability and blast project, which is now auspiciously completed.

The slight calibration of the decrease in allotment price may announce investors were reassured the abundance is on clue for its annualised ambition of 23,500 ounces of gold by the end of the first division abutting year, while the adjournment is negated by the enhance in output.

“With underground ability and blast upgrades and incremental debottlenecking of action bulb completed, throughput has added to 4,000 tonnes of augment per month,” Scotgold said.

Quarter four assembly is accepted to be in band with expectations and importantly advanced of the 2nd and third quarters, with a run amount of 16,000 ounces per annum of gold.

READ MORE: Scottish gold abundance strikes almanac sales of £5m

This is a "significant step" appear accomplishing appearance two assembly levels of a 23,500 ounces per annum run amount of gold as planned by end of division one, 2023, it said.

July and August gold apply shipments totalled 214 tonnes with a sales price of £2.6 million.

Scotgold answered underground ability and blast upgrades to advance access, operations and enhance mining amount and ore abstraction were completed in backward August.

The debottlenecking of action bulb areas, such as abutment and tailings filtration, was once also completed “enhancing gold recoveries and efficiencies above management’s antecedent expectations”.

It said: “This enables the bulb to action up to 4,000 tonnes of augment per month above-mentioned to accession of tailings thickener – which is a 33 per cent enhance in antecedent accommodation at this point.

The tailings thickener is set up in the processing bulb with architecture “well beneath way”. Planned allotment confused to the aftermost division of this year “to accredit bland accomplishing in-line with added throughput of ore from the debottlenecking initiative”.

 London Stock ExchangeSource: London Stock Exchange

The action bulb is estimated to accomplish 5,000 tonnes per month throughput, which is an 11% enhance to antecedent estimates.

It answered in its third division amend it could add further clarify plates to the tailings clarify and accessory modifications all over the affray comminute and abutment areas in the action to further enhance throughput of the processing bulb to 6,000 tonnes per month to accomplish assembly levels of 23,500 ounces per annum.

Phil Day, Scotgold Resources arch executive, said: “We accomplished bartering assembly in July 2022 and abide to function as a cash abundant business.

“I am badly encouraged by advance to date, which sees the majority of optimisation initiatives completed, acerb agreement us for Q4 2022 and Q1 2023, active the assembly access up appear Phase 2, and absolutely margins, cash bearing and profitability, in band with our declared strategy.”

 Phil Day, Scotgold arch executive, at Cononish. Colin MearnsPhil Day, Scotgold arch executive, at Cononish. Colin Mearns

He also said: “Notwithstanding the abridgement in gold assembly in backward August/early September and connected knock-on abridgement of Q3 2022 advice to 2,000 ounces of gold, due to the successful, about delayed accomplishing of the ability and blast upgrades - I am aflame looking ahead.

"The delayed ore abstraction from the abundance will be negated by the contempo upgrades in ability and blast and Q4 2022/Q1 2023 are set to be actual able-bodied abode in band with our abundance plan and anticipation to see a meaningful enhance to Q2 and Q3 2022 production.

“The action bulb accepted throughput has added to 4,000 tonnes per month, from 3,000 tonnes per month in Q2 2022, and this is targeted to enhance to 5,000 tonnes per month while the tailings thickener comes online and again afresh to 6,000 tonnes per month with further optimisation of the bulb in Q4 2022.

“We abide on clue to bear Phase Two of Cononish’s access up and annualised assembly levels of 23,500 ounces of gold by the end of Q1 in 2023.”

Shares in Scotgold Resources bankrupt bottomward 2p, or 3%, 64.5p.

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