China Nonferrous Gold reports period of serious development

Mineral exploration and development company China Nonferrous Gold announced its interim results for the six months to 30 June on Friday - a period in which it earned nil revenue as it continued its development activities.

The AIM-traded firm posted a loss before tax of $3.4m, widening significantly from $1.2m in the first half of 2015.

Its loss per share was 0.89 cents, compared to 0.31 cents a year ago.

China Nonferrous Gold did report a period of extensive development activity, however, with 2,183 metres of tunneling and cuttings at various levels completed by the end of August.

The board said 11,500 metres of drilling was completed as part of face preparation, as well as 4,497 metres of infill drilling.

“More than 122,000 tonnes of ore has been extracted during the first half of 2016 from [these] levels and has been stockpiled,” the board said in a statement.

“Technical enhancements to the plant [have been] completed following trial production.”

China Nonferrous Gold’s processing capacity currently stood at 1700 tonnes per day, and it confirmed 1,777 tonnes of gold concentrate had been produced and 150,000 tonnes of ore stockpiled by the end of August.

It also completed debt refinancing of $120m with CNMC International Capitals Company, and post period end up to $100m with China Construction Bank Corporation Macau Branch, both at lower costs.