Extractive Industries

Scotgold rise in revenues offset by increased loss and debt

Scotgold Resources Ltd’s increase in revenues were dented by a rise in pre-tax losses and debt at Cononish gold and silver mine, near Tyndrum in Scotland.

FINANCES

The company’s interim results for the six months ended 31 December 2022 showed total revenues of A$9.5 million (H1 2022: A$6.4m)

Loss before taxation was A$9.5m (H1 2022: A$5.3m) with net debt of A$25m at 31 December 2022.

Scotgold’s cash more than halved to A$67,000 (30 June 2022: A$168,000.)

OPERATIONS

Publication of the results follows Scotgold’s warning earlier this week over its future as a going concern.

The company’s results included production for the six months ended 31 December 2022, totalled 3,809 ounces of gold.

Gold concentrate sales were £5.4m (A$9.5m) from 550 tonnes of concentrate shipments to Scotgold’s off-take partner

The company reported no serious health and safety incidents.

In December, the company made its first Scottish gold doré sales to Scottish jewellery companies in totalling £25,420.

Scotgold currently employs 96 people and has been working with Forth Valley College in Falkirk on apprenticeship schemes in mechanical engineering roles. 

In addition, in July 2022, the company launched a partnership with the University of St Andrews for a five-year student bursary programme.

The company is also engaged with the university’s MSc Strategic Resources course which involves work at St Andrews and Cononish.

ESGs

Chairman Peter Heatherington said that Scotgold was committed to sustainable and responsible mining as well as the safety of its workforce and local communities.

“To that end, we are proud of our no cyanide status, as one of the only gold producers globally that does not use it in our processing. 

“We also utilise dry stack tailings to ensure safety and a minimal environmental footprint.”

The company additionally supports the work of Loch Lomond and The Trossachs National Park and contributes to local charity Strathfillan Development Trust which representing residents of Tyndrum, Crianlarich and Inverarnan.

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