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Chaarat still trying to secure funding for Tulkubash

Chaarat CEO Mike Fraser

Chaarat CEO Mike Fraser

15th June 2023

By: Mariaan Webb

Creamer Media Contract Publishing Editor

     

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London Aim-quoted gold miner Chaarat Gold has still not pinned down finance for its Tulkubash development project, in Kyrgyzstan.

Chaarat has been ready to start work on the $115-million project for more than a year and a half, having published a bankable feasibility study in 2021.

However, financing efforts ground to a halt when the Kyrgyz government seized control of the Kumtor mine from Canada’s Centerra Resources. That issue was resolved in April last year with an out-of-court settlement.

“It was disappointing that we were not able to secure a funding solution for our Tulkubash development project,” CEO Mike Fraser said on Thursday, announcing the company’s full-year results.

Chaarat had aimed to complete financing in the second half of last year, which would have enabled the company to pour first gold by late 2024, or 2025.

Fraser said that the miner, which also operates the Kapan mine in Armenia, was continuing with efforts to secure financing for Tulkubash and that it was looking towards “alternative finance options”.

Tulkubash will be a 95 000 oz/y to 100 000 oz/y operation and is the precursor to the main Kyzyltash mine, which will be a 300 000 oz/y mine over 20 years.

Meanwhile, Fraser reported that the Kapan mine had exceeded its 2022 guidance with production of 62 800 oz, compared with a guidance of 56 000 oz to 62 000 oz. All-in sustaining costs rose by 14% year-on-year to $1 376/oz.

"Our 2022 financial results reflect the challenging environment in Armenia, with the 23% appreciation of the Armenian Dram rate resulting in a decrease in group Ebitda of 52% compared with 2021. This was on top of the higher energy costs and inflationary pressures seen due to the war in Ukraine,” said Fraser.

Kapan’s production guidance for 2023 is 50 000 oz to 55 000 oz and an additional 5 000 oz to 10 000 oz of third-party output.

Edited by Creamer Media Reporter

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