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Chaarat Gold Holdings Ltd on Thursday reported a swing to annual loss due to ‘challenging environment’ in Armenia, as it appointed David Mackenzie as chief financial officer.
Shares were down 18% at 9.50 pence each on Thursday morning in London.
The gold mining company with an operating mine in Armenia, and assets in the Kyrgyz Republic reported revenue of $92.3 million for 2022, down slightly from $72.8 million in 2021.
It swung to a pretax loss of $6.9 million from a profit of $349,000, as operating loss was $538,000 compared to a profit of £7.8 million a year earlier.
Earnings before interest, tax, depreciation and amortisation amounted to $6.5 million in 2022, down 52% from $13.5 million in 2021.
Chief Executive Officer Mike Fraser said: ‘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 to 2021. This was on top of the higher energy costs and inflationary pressures seen due to the war in Ukraine.’
However, all-in-sustaining cash cost for own ore production amounted to $1,376 per ounce, up 14% from $1,205/oz for 2021.
Additionally, the company named David Mackenzie as chief financial officer with immediate effect. Mackenzie has been acting as interim CFO since February 1.
The company’s Chief Operating Officer Darin Cooper will be leaving shortly to ‘pursue other opportunities’, it added.
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