Shares in Scottish gold producer Scotgold Resources dipped after it revealed global tensions over Ukraine are holding up its shipments of precious metal.
Scotgold, which started production from its Cononish mine in the hills of Argyll in late 2020, said its gold concentrate was currently stuck in port awaiting transportation overseas.
And it also revealed it had agreed terms for a £250,000 short-term loan from Bridge Barn, a company owned and controlled by non-executive director Nathaniel Le Roux.
The shares were down nearly 4% at 64p at market close today.
Production ramp-up still on track
Scotgold said it need the cash to cover its immediate working capital requirements.
These have been affected by the delay in the shipment of gold concentrate from port, due to “current macro and geopolitical events impacting global shipping lines”, the firm said.
Alternative Investment Market-listed Scotgold said it was unable to give any further details of the port’s location or shipping route, citing commercial reasons.
In a statement to the London Stock Exchange, it said: “Production and the company’s mine optimisation plan to ramp up the production profile of its Cononish gold mine continue to progress in line with management’s expectations.”
Scotgold saw its share price rocket more than 15% earlier this year when it announced record production from Cononish, near Tyndrum.
It said it had achieved its highest gold concentrate output to date in December.
A total of 101 tonnes were produced that month, equating to around 700oz of contained gold – worth about £930,000 at current market prices.
The company, which also announced new debt funding worth £500,000, added it produced 1,508oz of gold and 7,200oz of silver from Cononish in the final quarter of 2021.
Cononish is on the edge of Loch Lomond and within the boundary of the Trossachs National Park.
Scotgold spent years trying to secure permission for its production plans.
The company now aims to become a “mid-tier multi-asset gold producer” in Scotland.
It currently holds 13 lease option agreements covering an area of nearly 1,120 square miles of the central Highlands, mostly in rural Perthshire.
Three prospective areas close to Cononish have been identified and Scotgold intends to explore these in 2022 and 2023.
