Scotgold Resources sparkles with commercial production milestone after record quarter

Scotgold Resources says it has reached the milestone of being in commercial production after achieving its “strongest quarter yet” in which its Cononish mine saw a major leap in gold output.

The Aim-quoted firm has revealed figures for the period ending June 30, saying gold production at the site in the Loch Lomond & The TrossachsNational Park totalled 3,531 ounces, a quarter-on-quarter increase of 188 per cent.

This exceeded guidance of 2,600 to 3,200oz, and gold concentrate shipments amounted to 415 tonnes with a sales value of £5 million, comprising 80 per cent of the first half total after lower-than-expected production figures for Q1.

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The quarter also saw Scotgold, which says it is Scotland’s and the UK’s first commercial gold producer, notch up three consecutive months of positive operating cash flow, “and therefore we consider the company to be in commercial production from 1 July 2022 onwards”.

Boss Phil Day said: “This has been our strongest quarter yet for Scotgold, characterised by record gold production which exceeded guidance, record gold sales translating into significant cash-generation, and continued progress on the ground to meet our production and operational targets.

“In the short term, we are focusing on our transitional optimisations at Cononish, undertaking low [capital expenditure] initiatives to continue to drive the production ramp up… we continue to move rapidly towards phase two production levels of 23,500oz run rate of gold.

“We remain impressed with Cononish’s high-grade gold geology and anticipate that the operations and cost control discipline of our team will enable the mine to be even more cash-generative and profitable as it moves from phase one to phase two production.”

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