MINEX Forum

Tag: Silver

  • Chaarat inks deal to sell Armenia’s Kapan mine – DIGITALLOOK

    Chaarat inks deal to sell Armenia’s Kapan mine – DIGITALLOOK

    Chaarat Gold announced a binding agreement to sell its 100%-owned Armenian subsidiary Chaarat Kapan on Wednesday, which is responsible for the Kapan mining operation in southern Armenia.

    The AIM-traded firm said the deal, worth $55.4m, is between Chaarat and Gold Mining Company – a known entity in the Armenian mining space.

    It said the Kapan Mine had been functional since the 1960s, and was known for its polymetallic ore body, producing copper and zinc concentrates as well as by-products including gold and silver.

    Chaarat took ownership of the Kapan Mine in 2019, and since then, there had been significant improvements in the mine’s operational performance.

    It consistently met production guidance for between 50,000 and 65,000 gold equivalent ounces annually under Chaarat’s administration.

    The mine – Chaarat’s sole operating asset – brought in EBITDA of $22.7m in 2021 and $12.6m in 2022.

    However, its financial performance in the first half of 2023 was impacted by a persistently high Armenian dram against the dollar, as well as reduced production.

    The company said the sale’s consideration consisted of $55.4m, including $5m in cash and the remaining being offset by intra-group payables due to Chaarat Kapan.

    No adjustments would be made for debt, working capital, or other obligations.

    The board said completion remained contingent on a number of conditions, including approvals from Chaarat shareholders, Ameriabank, the Armenian Competition Protection Commission, and the buyer’s shareholders.

    Chaarat Gold justified the sale by highlighting its commitment to enhancing the Kapan Mine’s value over the years.

    Despite geopolitical challenges, including hostilities with neighbouring countries and the indirect effects of the Ukraine conflict, the firm said it managed to uphold its operational performance.

    However, the appreciation of the Armenian dram significantly affected its financial performance, with the sale set to allow Chaarat to concentrate on developing assets in Kyrgyzstan, and consider other external merger and acquisition opportunities.

    Post-sale, the proceeds would bolster Chaarat’s balance sheet, reducing its liabilities by $39m and offering a cash influx of $5m to support its ongoing projects, especially the Tulkubash project.

    With the sale, Chaarat would transition from a producer to a developer, as it planned to invest resources in its larger, low-cost development assets while simultaneously seeking funding for the ventures.

    Chaarat’s said its focus post-sale would be on its gold development assets, which had a combined book value of $82.5m and a potential production capacity of more than 350,000 ounces of gold annually.

    “The proposed sale allows Chaarat to focus on its growth pipeline in the gold sector with the aim of developing lower cost and higher value options within its portfolio,” said chief executive officer Mike Fraser.

    “It accelerates our strategic objective of developing the Tulkubash project and evaluating opportunities for inorganic growth options.”

    At 0908 BST, shares in Chaarat Gold Holdings were up 10.22% at 7.44p.

  • Adriatic Metals hails precious metals finds at Rupice

    Adriatic Metals hails precious metals finds at Rupice

    (Alliance News) – Adriatic Metals PLC on Wednesday gave an update on its Rupice northwest exploration which is part of the company’s Vares silver project.

    Adriatic Metals is a precious and base metals explorer and developer that owns the Vares silver project in Bosnia & Herzegovina and the Raska zinc deposit in Serbia.

    The company said it found 2.6 grams of gold per tonne, 409 grams of silver per tonne, about 12% zinc, 8.9% lead, 1.2% copper, 9% barium sulfate and 0.2% antimony in hole BR-30-23.

    Managing Director Paul Cronin said: “Additional exploration drilling, new geology, more tonnes at higher grades to the west of the current Rupice Northwest resource are adding significantly to the growth of Rupice. Faulting and folding have thickened and bent mineralization to vertical, with silver-gold-copper grades increasing in proximity to the deformation. Drilling will continue to define the western extent of RNW for a further resource update at the end of 2023.”

    Adriatic Metals rose 2.9% to 192.00 pence each on Wednesday morning in London.

     

  • KGHM silver certified by the London Base Metals Exchange

    KGHM silver certified by the London Base Metals Exchange

    The copper giant is one of the world’s most trusted silver producers. KGHM Polska Copper S.A. has been certified for the next consecutive year by the London Base Metals Exchange (LBMA) for responsible silver production in 2022. The certificate confirms Polish Copper’s compliance with the requirements set out in the LBMA Responsible Silver Guidance and allows it to gain entry to the LBMA’s prestigious Good Delivery list of the world’s most trusted silver producers.

    – The highest quality of both the product and the entire production process is the strength of the KGHM brand. Our customers know that we are a trusted partner who adheres to the highest standards throughout the supply chain. The LBMA certificate confirms that it is not a matter of declarations, but of actual actions – said Tomasz Zdzikot, CEO of KGHM Polska Miedź S.A.

    EXORBITANT STANDARDS

    The LBMA’s guidelines for responsible sourcing of gold and silver are designed, among other things, to combat human rights abuses and the financing of terrorism, avoid supporting military conflicts and ensure compliance with the highest possible anti-money laundering standards. The guidelines recommend the use of a five-step, risk-based supply chain examination procedure, in line with the OECD Guidelines for a Responsible Supply Chain for Minerals from Conflict and High-Risk Areas.

    As part of the certification process, an attestation service by an independent, LBMA-accredited auditing firm (PricewaterhouseCoopers Poland) was required. A positive assessment of KGHM’s procedures for the production, storage and sale of silver, as well as of the Policy and Procedure for a Responsible Supply Chain for Gold and Silver of KGHM Polska Miedź S.A. provided the basis for the auditor’s positive recommendation to award the certificate.

    SILVER MARKET LEADER

    KGHM has been on the podium of global silver producers for years. According to the World Silver Survey 2023, it ranks first in the list of “largest silver mines in the world”. In the category of “largest silver producers”, the copper giant was ranked second. Polish Copper produced 1,298 tonnes of silver in 2022.

    KGHM sells silver in the form of pig sow and granulate. Silver customers include, among others, financial institutions, the jewellery industry, the electronics and electrical industry, the photovoltaic industry, catalyst manufacturers and coin, bar and medal producers. Around 16% of the copper giant’s revenue comes, precisely from the sale of silver.

    FROM BLACK MUD TO SHINY PIG SOW

    Silver production at KGHM is carried out at the Głogów smelter, in the Precious Metals Division. PMD was established exactly 30 years ago specifically to recover the precious metals – silver and gold – present in the copper ore. These are found in the so-called ‘black mud’, i.e. the anode slime produced during the electrorefining of copper. From cathode silver with an Ag content of more than 99.99 per cent, metallic silver is produced in the form of granules packaged in 25 kg bags and pig sows of approximately 1,000 troy ounces, which amounts to about 31.1 kg.