Peninsular Gold Limited Raub Operations, Trading Update and Suspension (6394Y)
02 Dezembro 2014 - 1:01PM
UK Regulatory
TIDMPGL
RNS Number : 6394Y
Peninsular Gold Limited
02 December 2014
PENINSULAR GOLD LIMITED
('Peninsular' or the 'Company')
Raub Operations and Trading Update
and
Suspension from trading on AIM
Peninsular Gold Limited announces that it has requested a
suspension of trading of its shares on the AIM Market pending
clarification of its financial position. The suspension was
effective as of 7:50am on 2 December 2014.
Financing and Suspension of Trading on AIM
The Company is currently reviewing its working capital
requirements during the proposed care and maintenance period at
Raub (as outlined below). As at 30 November, 2014 Peninsular has
available funds of approximately GBP320,000 and is currently
looking to raise additional funds to finance its operations.
The Group currently has GBP1.2m convertible loan notes which are
due for repayment on 22 December 2014, as well as debt facilities
with its Malaysian banking partners (Bank Rakyat Kerjasama Rakyat
Malaysia Bhd. ("Bank Rakyat") and Alkhair International Islamic
Bank Ltd. ("Alkhair") who have c.GBP18m of outstanding loans and
require servicing in the region of GBP140,000 per month. The first
Alkhair quarterly repayment instalment of US$750,000 is due during
December 2014. The first principal repayment instalment of the Bank
Raykyat loan is currently scheduled for June 2015. The Group will
be entering into negotiations with its banking syndicate, trade
creditors and other creditors. These negotiations may include
suspension of capital and/or interest payments. In the event that
the Group is not able to either agree appropriate terms with its
creditors and/or raise new funds, then the Group would not be in a
position to meet its financial obligations.
At this stage, there can be no certainty as to the outcome of
these discussions. As a result of the financial uncertainty
regarding the Group, the Board has requested that trading in the
Company's shares be suspended on the AIM Market, pending
clarification of the Group financial position. The Board continues
to explore all alternatives available. The Company will make
further announcements in respect of the financial condition and its
expectations as soon as practicable.
Update on Raub Operations
The Company is providing an update on the operations of Raub
Australian Gold Mining Sdn. Bhd. ("RAGM"), its wholly owned
subsidiary, which operates the Company's Raub gold mine.
RAGM has been in discussions with the Malaysian environmental
authorities regarding additional operational requirements which the
authorities have sought to attach to the current environmental
consent which governs operations at its Raub project. In particular
the authorities have requested changes relating to the location of
RAGM's tailings storage facilities which would require significant
changes to its tailings management plan. RAGM remains in discussion
with the authorities as to the requirement for this new condition
and whether it may be reviewed or appealed. In the meantime, RAGM
has taken the decision to halt gold production at Raub pending
resolution of this issue in order to ensure continuing compliance
with the revised tailings management requirements. Given the onset
of the monsoon season, when tailings management is particularly
important, this is considered a prudent course of action under the
circumstances.
Whilst this is an unexpected development, suspension of
production will enable RAGM to undertake important plant
maintenance and improvement work during the monsoon season, which
should enable a future increase in throughput and productivity.
This will better position the business to operate more efficiently
in light of the continuing low gold price. It is currently
anticipated that operations could re-commence at Raub for Q2 2015
should there be satisfactory resolution of this situation.
The Company is currently reviewing its operational base at Raub
to manage the maintenance programme and reduce overheads during the
cessation of operations. This review is ongoing and further
announcements in relation to Raub will be made in due course.
Trading Update
Production for the quarter to 30 June 2014 was 4,679 ozs
bringing the total for the financial year to 20,948 ozs (2013:
22,383 ozs). Performance in the 2(nd) half of the financial year
was similar to the 1(st) half and revenue for the financial year to
30 June 2014 was c. GBP16 million (2013: GBP23 million). As
previously announced, due to the continuing low gold price, the
Company will be posting a loss for the financial year ended 30 June
2014.
Due to the current market conditions and the potential impact of
revised environmental requirements, production for the 4 months
from July 2014 (since the end of the financial year) to the end of
October 2014 was 1,107 ozs.
Update on Company's Annual Report
The Company's financial statements for the year to 30 June 2014
are being prepared, however due to the current circumstances, it is
anticipated that there will be a delay in the publication of these
while the Company resolves its negotiations with its funding
partners. Under the AIM Rules for Companies, the Company is
required to publish its annual audited accounts by 31 December
2014. Depending on the timescale of resolution of negotiations, the
Company may not be a position to publish by 31 December 2014 which
itself could lead to a suspension of trading in the Company's
shares on AIM pending such publication.
For further information:
Dato' Sri Andrew TY Kam Patrick Watson
Chairman and Chief Executive Finance Director
Peninsular Gold Limited Peninsular Gold Ltd.
Tel: +60 (0)3 2698 8381 Tel: +44 (0)7799 885653
Samantha Harrison Colin Rowbury
Nominated Advisor Broker
RFC Ambrian Limited Daniel Stewart & Co. Ltd.
Tel: +44 (0)20 3440 6800 Tel: +44 (0)20 7776 6936
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This information is provided by RNS
The company news service from the London Stock Exchange
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