Altyn Confident On Future Production Targets As 2016 Sees Declines
LONDON (Alliance News) – Altyn PLC on Monday expressed confidence in meeting its targeted production going forward, although it reported a decline in production for 2016 as it developed its underground mine.
Altyn is a gold mining, exploration and development group operating in Kazakhstan.
Shares in Altyn were down 22% at 1.25 pence Monday.
The company produced 10,970 ounces of gold in 2016, down from 15,534 ounces in 2015, and 16,520 ounces of silver, down from 26,608 ounces. It said this decline was in the context of the continuing development of the Sekisovskoye mine and is a direct consequence of resources being used to build a platform to bring the underground mine to production.
Altyn expects its ongoing capital expenditure in 2017 to be in the region of USD15 million before increased to USD20 million in 2018.
“We are pleased with the development of the underground mine in 2016 which has built a solid platform for the future growth of the company, the results of which are now bearing fruit. The strong rate of growth of production in the second half of 2016 has been sustained in 2017, and will be further enhanced going forward as new capital equipment is acquired,” said Chief Executive Officer Aidar Assaubayev in a statement.
“We are confident in meeting the targeted forecast gold production figures going forward of 100,000 ounces in the future, with a forecast cash cost of USD510. The Sekisovskoye mine project together with the added benefit of the development Karasuyskoye ore field, the exploration results of which are looking very encouraging are expected to generate substantial returns to the shareholders,” Assaubayev added.
About Altyn plc
Altyn is a gold mining, exploration and development group based in Kazakhstan. Whilst the Company was initially established to exclusively develop and operate the Sekisovskoye gold and silver mine in the East Kazakhstan Region, it is now actively targeting additional gold mining opportunities in Kazakhstan. This includes the adjacent prospective Karasuyskoye Ore Fields, on which Altyn was recently awarded the tender to perform further confirmatory testing in order to gain the sub-soil user licence.
The Company holds a 100 per cent shareholding in DTOO Gornorudnoe Predpriatie Sekisovskoye (“DGPS”) which holds a subsoil use contract in relation to the Sekisovskoye deposit, covering a total area of 0.855km². The subsoil use contract for Sekisovskoye is valid until 2020 and the Company currently intends to seek to extend the contract in accordance with its terms. The Company also holds a 100 per cent shareholding in Altyn MM LLP (formerly Altai Ken-Bayitu LLP), which owns and operates the processing plant at the Sekisovskoye deposit. The Sekisovskoye deposit is located at the village of Sekisovskoye, approximately 40km north of the town of Ust-Kamenogorsk, the capital city of the East Kazakhstan Region. The current operation is focused on mining the near-vertical deposits which extend to the surface below the open pits which have been previously mined.
The Company intends that the Sekisovskoye deposit shall become a selective-mining underground operation. As at 31 May 2014, the Company’s proven and probable reserves consisted of 2.3Moz of gold and 3.0Moz of silver and the Company’s measured, indicated, inferred resources consisted of 5.1Moz of gold, and 3.5Moz of silver, in each case as classified in accordance with JORC.