TIDMCGH
RNS Number : 7968H
Chaarat Gold Holdings Ltd
27 March 2020
27 March 2020
Chaarat Gold Holdings Limited
("Chaarat" or the "Company")
Chaarat Gold COVID-19 response update
As COVID-19 spreads globally, Chaarat Gold (AIM: CGH), the
AIM-quoted gold mining company with an operating mine in Armenia,
and assets at various stages of development in the Kyrgyz Republic,
is prioritizing the safety and health of its people and ensuring
the resilience of the Company's operations.
People first
We put the health and safety of our people first. We are
monitoring the situation daily in all our countries of operation.
We have appropriate plans in place and have proactively taken
precautionary measures to prevent and reduce the spread of
COVID-19. There are no confirmed cases at any of Chaarat's
operations to date.
We have restricted all travel by our employees, and limited
visitors to our facilities. Our staff are working from home where
possible, and additional measures to protect our employees have
been implemented for those still working at our operating sites.
Our locations span four countries, with top management spread
across each to preserve maximum flexibility for the Company.
Supporting the communities in these difficult times is equally
important to us. Chaarat is implementing various community support
programmes. 10,000 COVID-19 testing kits are being procured for
distribution among communities in Kapan (Armenia) and the Chatkal
region (Kyrgyz Republic). We will also donate funds for procurement
of the equipment for a new laboratory for COVID-19 testing in the
Kyrgyz Republic in cooperation with other mining companies.
In the Kyrgyz Republic we are supporting communities located in
the Chatkal region with delivery of essential goods. We are
supplying 10 tonnes of flour and one tonne of sanitiser. In Kapan
(Armenia) we are working with local companies to supply the
regional hospital with masks, sanitiser and goggles.
Stability of the business
While the impact of coronavirus on the global economy is
significant, demand for our products has remained relatively
healthy. In addition, we are seeing positive trends in cost
reduction in both of our jurisdictions due to the declining price
of fuel and the depreciation of local currencies versus the US
Dollar.
As we continue our efforts to build a resilient business with a
strong balance sheet, during this uncertain period, we are taking
actions to further reduce costs and streamline processes to ensure
the effectiveness and stability of the Company. We will also
continue to evaluate every opportunity for the Company to grow
during this period.
In this very dynamic situation, we are continuously monitoring
the situation and have business continuity plans in place to
protect our people, sustain our operations and monitor supply
chains on a daily basis.
Kapan (Armenia)
Kapan continues to carry out operations at normal levels.
Currently we are experiencing minimal disruptions to supply chains
and shipment of our products, as the quarantine movement
restrictions do not apply to commercial transport and goods. We
have made adjustments to our normal working conditions to reduce
contact and proximity of workers whilst working and during break
periods.
We see potential benefits for our operations derived from the
oil price drop and the local currency (AMD) devaluation versus the
US Dollar for goods and services paid in local currency. These
account for up to 84% of our operating costs in Kapan.
Tulkubash (Kyrgyz Republic)
As the Kyrgyz Republic government has declared a state of
emergency, we have started to experience a slowdown in construction
speed at the Tulkubash project. Following the country restrictions
imposed, all local employees have been sent home. Our main
contractor "Pamir Mining" continues limited works related to Haul
Road and construction of other site roads. Fuel and food supplies
remain steady and uninterrupted.
The significant global restrictions on the movement of people
will impact our workforce mobilization for the summer construction
period at our Tulkubash Project. This delay will likely cause the
first gold pour to be moved by six months from late 2021 to Q3
2022. We are working on the revised timetable for the project and
will update the market accordingly. The delay in first gold pour
will have negligible impact on the total capital cost of
construction at the Tulkubash Project as the works are being
prolonged solely due to the current situation.
The oil price drop and depreciation of the Kyrgyz SOM is likely
to have a favourable economic impact on the Tulkubash Project. We
will provide an update once normal business resumes.
Funding update
The Company is in advanced discussions with the holder of a
US$17,000,000 loan which matures on 31 March 2020. An appropriate
update will be published when a final agreement is reached.
The Company continues with its efforts to advance project
financing for the Tulkubash Project. However, in the current
environment each funding institution is assessing the situation and
implications for their own businesses. The efforts to optimise the
funding structure, as well as the project financing discussions for
the construction of the Tulkubash gold project in the Kyrgyz
Republic are ongoing with interest from multiple parties albeit the
timeline on those discussions is likely to be impacted by the
pandemic. Chaarat is aiming to finalise project financing in H2
2020.
The Company does not foresee a requirement for any additional
fund raising at the current time and will reconsider this position
when the COVID-19 pandemic subsides. The working capital facility
from Chaarat's largest supporting shareholder, Labro Investments
Limited, provides a further US$8 million of additional
liquidity.
We will continue to prioritise keeping our employees safe and
healthy. We will provide regular updates on our actions to our
stakeholders.
Chaarat plans to announce its annual results for 2019 in
mid-April 2020.
Artem Volynets, Chief Executive Officer, commented:
"The health and safety of our employees and communities is our
main priority now. We are working tirelessly to keep our staff
operating safely through this uncertain period and have continuity
plans in place to ensure our operations continue to run smoothly.
We are grateful to our main shareholder for continuing to support
the financial stability of the Company. We are also pleased to be
able to help the communities in which we operate to overcome these
difficult times together. While we mitigate the impact of the
COVID-19, we will continue to explore opportunities to grow our
business further".
Enquiries
Enquiries
Chaarat Gold Holdings Limited +44 (0)20 7499 2612
Artem Volynets (CEO) info@chaarat.com
Numis Securities Limited +44 (0) 20 7260 1000
John Prior, Paul Gillam (NOMAD)
James Black (Corporate Broking)
SP Angel Corporate Finance
LLP + 44 (0) 20 3470 0470
Ewan Leggat (Joint Broker)
finnCap Limited +44 (0)20 7220 0500
Scott Mathieson (Joint Broker)
Camille Gochez (Joint Broker)
About Chaarat
Chaarat is a gold mining company which owns the Kapan operating
mine in Armenia as well as Tulkubash and Kyzyltash Gold Projects in
the Kyrgyz Republic. The Company has a clear strategy to build a
leading emerging markets gold company with an initial focus on
Central Asia and the FSU through organic growth and selective
M&A.
Chaarat is engaged in active community engagement programmes to
optimise the value of the Chaarat investment proposition.
Chaarat aims to create value for its shareholders, employees and
communities from its high-quality gold and mineral deposits by
building relationships based on trust and operating to the best
environmental, social and employment standards. Further information
is available at www.chaarat.com .
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDLQLLLBXLFBBK
(END) Dow Jones Newswires
March 27, 2020 03:00 ET (07:00 GMT)
Chaarat Gold (LSE:CGH)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Chaarat Gold (LSE:CGH)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024