Chaarat Gold Holdings Ltd

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Three is the magic number for Chaarat Gold Holdings Ltd 

 

“…Today Chaarat is a proper Company with three assets in two jurisdictions, over nine million ounces in resources, and we currently have $30 million in the bank. We are set on the path to triple production in the next two years…”

 

The border between Tajikistan and Kyrgyzstan is a historic fault line for skirmishes between the two Central Asian countries which flares up, creates headlines, has recently been deadly and has destroyed lives.

It is brutal, unsettling and currently resolved.  Clashes of whatever magnitude, however do NOT impact the operations of revitalised Chaarat Gold.  They do, however depress the share price of the company that is unfairly tarnished with military conflict in one country and revolution in another.

Chief executive Artem Volynets is resolute.  “We have not only survived; the company has done much better than our guidance.  We have outperformed on our operational targets producing more gold equivalent that we planned, we have done better on the financial side with EBIDTA for Kapan going more than 50% from the previous year.”

Kapan strengthened the company’s portfolio of assets when purchased in 2019. It operates the Shahumyan Gold-Polymetallic deposit producing copper and zinc concentrate with gold and silver content. It provides both near term cash flow as well as significant growth potential and its purpose is to accelerate Chaarat’s transformation from a developer to a producer.  It has, according to Volynets, expansion potential.

There are other assets in Chaarat’s folder.

There’s the Tulkubash project which is a heap leach project. expected to grow into a world-class gold deposit in an emerging new gold district.

Construction is ongoing at Tulkubash and the first gold production remains on schedule for 2022. Volynets says he’s hopeful about near term news about a farm in or “completion for the funding.”  It may be debt funding that will unlock the construction of Tulkubash which Volynets says will “set us on clear path to triple production.”

Not bad for a company that three years ago according to the boss: “Was just a bit of the mountain in the Kyrgyz Republic. No cash. No team. No strategy. No bankable feasibility study for any project.”

Volynets is from the old school of mining so struggles to spin superlatives,  but where his company is concerned he is crystal clear. “Today Chaarat is a proper company with three assets in two jurisdictions, over nine million ounces  in resources, just under 60,000 ounces of production to date with a specific plans to triple production within two years  and increase it ten times within seven  years. And it currently has $30 million in the bank.”

That’s a lot of numbers, but Volynets says ambitions are achievable due to new management and the support of the local communities that have supported, and enabled the company to progress its projects on a peaceful co-existence and beneficial interpendency.

Artem talks to Sarah Lowther about the importance of host communities and how they are the best amour against threats perceived or real.

 

Download the investor presentation

Watch the ‘newly appointed’ management team talk about the company’s prospects in April’s analyst video

 

Watch Artem speak to Proactive London’s Katie Pilbeam about the most recent years triumphs in a year of adversity.

The author was remunerated but does not hold shares in the company

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