Central Rand Gold stock falls on wider operating loss

Central Rand Gold announced its unaudited interim results for the six months to 30 June on Wednesday, with its loss before interest, tax and depreciation widening to $1.9m, from $0.7m a year earlier.

The AIM-traded firm said the larger loss could be put down to to the cessation of open pit mining in March.

As a result, internal gold production decreased by 23% to 2,637 ounces, and and overall revenue decreased to $1.8m from $4.4m.

The company entered into a tolling agreement in July with a third party, Nikkel Mining, who will provide product to be treated through the plant.

“The Tolling agreement is in the form of a value per tonne of throughput in the plant, which is anticipated to raise income for Central Rand Gold,” the company’s board said in a statement.

“This in turn will assist in the company being right-sized and refocused.”

Cash and cash equivalents at period end totalled $0.4m.

“Post the period end and as previously announced, the company has identified opportunities to raise additional funding from a number of parties in order to pursue growth opportunities identified and to continue as a going concern,” the board added.

As at 1511 BST, shares in Central Rand Gold were down 11.69% at 1.13p.