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Chaarat Gold hails “year of transformation” in 2018 as it moves to producer from developer

The acquisition of the Kapan mine has transformed the firm into a producer "in a single step" while drilling at Tulkubash in 2019 is expected to yield successes similar to those in 2018
Gold pieces
Chaarat added over 650,000 ounces of gold in 2018 to its resource at Tulkubash

Chaarat Gold Holdings Limited (LON:CGH) shares rose on Wednesday as the firm hailed a “year of transformation” for 2018 as it kicked off its current year by transforming from a developer to a producer.

Over 2018, the AIM-listed miner said it added over 650,000 ounces of gold to the Measured and Indicated (M&I) Resource at its Tulkubash project in the Kyrgyz Republic, taking the total M&I to more than 1.6mln ounces.

WATCH: Chaarat Gold makes strong start to 2019 exploration programme at Tulkubash

Martin Andersson, executive chairman of Chaarat, said a drilling programme at Tulkubash planned for the current year was expected to have “similar rates of success” to those in 2018.

Chaarat had also secured US$120mln in financing during 2018 and the first half of 2019 with “minimal dilution to shareholders”.

Post-period, the company said its acquisition of the Kapan mine in Armenia had transformed it from a developer to a producer “in a single step”.

Anderson added that an almost 40% year-on-year increase in the gold reserves of Tulkubash had demonstrated “remarkable future growth potential” for the project.

In the figures for 2018, Chaarat reported an operating loss of US$13.7mln, lower than the US$16.6mln loss in the prior year, while it ended the 12 months with a cash balance of £1.17mln.

In afternoon trading, Chaarat shares were 4.6% higher at 29.80p.

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