TIDMCNG
The following amendments have been made to the 'Update on
Reporting Timetable' announcement released on 29/06/2020 at
11:28am.
"The Company's loans remain in excess of US$109 million" has
been replaced, for clarification purposes, with the following: "At
the current time, loans drawn down by the Company amount to c.
USD$341 million, this includes US$104m of banking facilities
(unaudited)."
All other details remain unchanged. The full amended text is
shown below.
China Nonferrous Gold Limited
("CNG" or the "Company")
Trading Update
Update on Reporting Timetable
China Nonferrous Gold Limited (AIM: CNG), the mineral
exploration and mining company currently mining the Pakrut gold
project in the Republic of Tajikistan, announces a trading update
for the year ended 31 December 2019 in advance of the release of
the Company's final results.
The Company is progressing the audit process but due to the
challenges of COVID 19, and pursuant to Inside AIM (26 March 2020)
the Company has been granted an extension to the date by which its
annual accounts can be published. The new deadline by which the
annual accounts must be announced is 30 September 2020, however the
Board intend to publish and file these accounts on or before 31
July 2020. The Company has also received confirmation that this
extended timetable is permitted under the relevant legislation in
the Cayman Islands, where the Company is incorporated.
Background
The Pakrut gold mine entered production and full operation in
2019, which saw the Company transform from developer to
producer.
The Company made significant achievements in 2019 and became an
important Gold-production enterprise in Tajikistan. Pakrut gold
mine achieved its internal production targets for 2019, which
brings steady cash flows to support the sustainable development of
the Company.
Post close trading update
As previously announced, since the end of the period under
review, the Company drew down US$14.50 million on a US$30 million
loan facility with China Construction Bank (Asia) Corporation
Limited, all of which is being used for general working capital at
the Pakrut gold mine.
The Company commenced full production in January 2020, and
production continues at site despite COVID-19. This generates
important cashflows for the Company. However, as previously
disclosed in order to meet the repayment dates of certain existing
loans, a broader refinancing is required. Discussions are ongoing
and are positive and the Company expects to complete these
shortly.
Operational update
Through the joint efforts of company staff, the construction
works at the Pakrut gold project were successfully completed in
2018, and full production commenced in 2019.
From January to December 2019, a total of 731,600 tons of ore
was extracted from Pakrut gold mine, and a total of 690,300 tons of
ore were processed at a grade of 2.15 g/t; 17,966 tons of gold
concentrate were produced at the grade of 73.73 g/t; and 1,168 kg
of gold bullion were poured with comprehensive recovery rate of
79.6%.
Full production continued at the start of 2020 despite COVID-19,
and from January to April 2020, 218,360 tons of ore were processed
at a grade of 2.43 g/t; the recovery rate of processing was 93%;
the recovery rate of smelting was 85.5%, and 261.68kg gold ingots
were sold.
CNG's cash position has improved year on year following the full
production and continued refinancing. Prime operating revenues are
approximately USD$49.15 million for the twelve month period ended
31 December 2019 (unaudited) and the Company's cash balance at the
date of the announcement is cUSD$22 million, US$5 million of which
will be used to repay the loan by 30 June 2020. At the current
time, loans drawn down by the Company amount to c. USD$341 million,
this includes US$104m of banking facilities (unaudited).
COVID-19
With COVID-19 spreading globally, our priority is the safety and
health of our people and ensuring the normal activity of the
Company's operations. Since the outbreak of COVID-19 in Tajikistan
on April 30 2020, the Company has taken appropriate steps and
effective measures to ensure that staff at protected at site, but
to date operations at the mine site at Pakrut continue as normal,
and there are no confirmed COVID 19 cases and suspected cases in
the Company in either Tajikistan and China.
Looking ahead to FY2021 and beyond, Yu Lixian, CEO of CNG,
said:
"With steady state production at the Pakrut gold mine, the
Company is confident of achieving the 2020 production target of
680,000 tons of ore at site, which was its internal forecast for
the year.
The Company continues to enhance its production capacity and
focuses on perfecting and improving the smelting process by
reducing production costs, increasing recovery rates and improving
competitiveness.
The uncertainty created by the coronavirus pandemic on global
markets, and therefore on the production and operation at Pakrut
still exists. However, the Company has implemented effective
pandemic prevention and control, and is confident in the procedures
it has put in place to mitigate these risks. Further details of our
operations will be set out in our annual report and accounts which
will be published in due course."
For further information please visit the Company's website
(www.cnfgold.com) or contact:
China Nonferrous Gold Limited
Yu Lixian, Managing Director
Tel: +86 10 8442 6681
WH Ireland Limited
Katy Mitchell/James Sinclair-Ford
Tel: 0207 220 1666
Blytheweigh
Tim Blythe, Camilla Horsfall
Tel: +44 (0)20 7138 3224
View source version on businesswire.com:
https://www.businesswire.com/news/home/20200703005246/en/
CONTACT:
China Nonferrous Gold Limited
SOURCE: China Nonferrous Gold Limited
Copyright Business Wire 2020
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July 03, 2020 11:28 ET (15:28 GMT)
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