Scotgold Resources updates investors on mining progress as chief executive resigns

Scotgold Resources’ chief executive is quitting the firm to head back Down Under with the mining group kicking off the search for a replacement.

The firm, which is behind the Cononish gold and silver mine near Tyndrum on the West Highland Way, said Phil Day had notified the board of his intention to resign as chief executive, citing a “desire to spend more time with his family members in Australia”. Scotgold said the board had “reluctantly accepted his resignation”. The process of recruiting a permanent successor is to begin immediately and Day remains in post for the time being.

Chairman Peter Hetherington said: “Under his calm and steady leadership, since April 2021, Phil has guided the Cononish mine to safe and environmentally compliant commercial production, redesigned the mine schedule, implemented cut and fill ‘stoping’ for faster access to higher grade zones, commenced long hole stope mining and ramped up the process plant for optimal continuous operation.

“Significant challenges obviously remain for Scotgold. We as a board have a duty of care to all team members and respect Phil’s request for the time and space, away from CEO plc duties, with his family in Australia. We remain committed to all stakeholders and the ongoing development and production from Cononish, Scotland's first commercial gold mine.”

Day added: “I am very pleased with what we as a team have accomplished during my time as CEO. It has been a privilege to lead and develop the business. The company's team and board are its greatest asset and I want to express my gratitude for their contribution.”

The firm also gave a positive operational update after recently raising £2 million. Last month, Scotgold stressed that its ability to continue as a going concern was “entirely dependent” on the quantity of ore that is produced from now on.

Sheldon Modeland, an analyst at house brokerage Shore Capital, said: “Notwithstanding imminent changes to Scotgold’s management team, we note that the transition to long hole stoping has progressed well and is in line with the company’s 2023 mine plan. We are encouraged with the average grades coming out of the 445 level.”

Scotgold raises £2m but warns future depends on quantity and quality of ore being mined