Stockholm, 2012-05-24 08:45 CEST (GLOBE NEWSWIRE) --
Central Asia Gold AB (publ)
Interim report for the three-month period from January – March 2012
- Consolidated total income for the reporting period amounted to MSEK 32.9 (MSEK 34.3).
- Total production of gold during the first quarter was 36 kg (52 kg).
- EBITDA for the period was MSEK –3.9 (MSEK -6.0).
- The net result, after tax and non-controlling interest for the reporting period, was MSEK -13.2 (MSEK -11.1) corresponding to an earnings per share of SEK -0.75 (SEK -0.69).
- In January 2012, Centerra Gold Inc. completed the second phase of investments in the Kara Beldyr joint venture and thereby earned another 20% ownership in the joint venture. CAG´s ownership is currently 30% and the intention is to keep this share and participate in the future development of the license area.
- In February 2012, a preliminary resource estimate in accordance with NI 43-101 for the Gord Zone of the Kara Beldyr joint venture was presented with an indicated resource of 289,000 ounces of contained gold and an inferred resource of 211,000 ounces of contained gold.
Significant events after the end of the reporting period
- In April 2012, CAG announced the successful completion of an operational outsourcing agreement for the alluvial production unit Gold Borzya.
- In May 2012, CAG announced the appointment of Denis Alexandrov as new CEO of CAG. It was also announced that the CFO, Johan Arpe will resign from CAG and for the time being the deputy CFO, Mihail Fedulov will be acting CFO.
Comments by the CEO
Dear fellow shareholders,
During the first quarter of 2012 the permitting of the Tardan heap leaching plant continued as planned and during April 2012, several milestones in the permitting process, such as the approval by State Expertize and the subsoil usage agency, TuvaNedra was reached. Until early May, mining activities have been conducted at Tardan to prepare ore for the heap leaching plant and the production at the gravitational plant has continued at normal levels for the season. We now have enough ore mined at Tardan for the planned production of 400-600 kg in 2012 and currently all focus is on finalising the permitting for the phase two commissioning of the plant. The timetable for complete commissioning of the plant is during the summer of 2012.
As part of our strategy to phase out alluvial production and focus on hard rock mining we have signed an operating outsourcing agreement for the alluvial production unit Gold Borzya. We will remain the license holder and the gold seller for the production unit, but all mining and processing operations are outsourced to a local contractor. At Solcocon a major cost cutting initiative has been taken in order to establish a profitable operation at Solcocon in 2012. The production at Solcocon is always low during the first quarter due to the weather conditions at the site, but the production plan for 2012 remains at 200-220 kg.
In January 2012, Centerra Gold Inc. completed the second phase of investments in the Kara Beldyr joint venture and earned another 20% of the JV. We currently own 30% of the Kara Beldyr joint venture and intend to keep this share and participate in the future development of the license area that currently has 500,000 oz of indicated and inferred resources according to NI 43-101 standards.
I am also very pleased to announce that the board has appointed Denis Alexandrov to be the new CEO of CAG, effective from June 1, 2012. I will continue to support the company as chairman of board. Denis has more than 15 years of experience in the mining industry, including executive management positions in publicly traded mining companies. I personally feel a strong confidence that Denis together with the new management team will ensure that future challenges of CAG are met.
At the same time, our CFO Johan Arpe has decided to leave CAG and I would like to thank Johan for his commitment, hard work and achievements during his time at CAG. Mihail Fedulov, our deputy CFO, who has a strong international experience and a background from E&Y, Pwc and Deloitte, will step up as acting CFO.
All in all, we have executed on the strategy to move from alluvial production into hard rock mining, we have passed several important milestones in the commissioning of the Tardan plant and strengthened both the executive- and local management of the group. I strongly feel that we now are at a turning point in the development of the company and as a statement to emphasize this we are proposing to change the company´s name to Auriant Mining. Once the Tardan plant is commissioned the operating cash flows will be stabilized and support efficient and disciplined exploration program at our promising assets and provide for the continued development of the company.
It is with great confidence I am handing over the day-to-day management of the company to the new CEO, but will of course strongly continue to support the company with commitment and enthusiasm as a board member.
Preston Haskell
Chief Executive Officer
The full report is attached and can be down loaded from the company website, www.centralasiagold.se
