ScotGold cuts losses

Scotgold Resources, the firm focused on the Cononish gold and silver project in Scotland's Grampian Highlands, announced on Friday that it had reduced losses over the past financial year thanks to the company reaching the production stage of its first-ever commercially produced Scottish gold.

Losses were trimmed down from AUD 1.50m to AUD 1.35m in the year leading up to 30 June as Scotgold sold 258 troy ounces of gold concentrate compared to the 12 troy ounces it moved in 2016, and reduced expenditure on deferred mineral and exploration projects by AUD 582,111 as it established a premium route to market for the sale of its Cononish gold in pyrite concentrates and gold-rich galena concentrates.

As of 30 June, Scotgold had AUD 572,332 in cash and equivalents, a 25.4% year-on-year decrease, but held an inventory of gold concentrates with a net realisable value of approximately AUD 222,000.

The Perth-based group said it was in the midst of appointing investment banking advisers to source funding for the Cononish project from both debt and private equity providers and were hopeful of further progress being made on that front in the current financial year.

Scotgold also noted that initial exploration work had begun at its historic mine sites in France and Portugal.

An improved basic loss per share of 0.09p was reported over the year, over the 0.13p it had reported twelve months prior.

As of 1220 BST, shares had slipped back 9.23% to 29.50p.