Proactive Investors - Chaarat Gold Holdings Ltd (LON:CGH) shares fell 22% to 9p after the miner reported results which laid bare its low cash levels and revealed that two fatal incidents occurred during the year.
Revenue for the Armenian miner, which also owns assets in the Kyrgyz Republic, was flat during the last calendar year at US$92.3mln, while underlying earnings (EBITDA) dropped 52% to US$6.5mln.
An US$8.6mln loss after tax was reported, compared to US$3.6mln the year before.
Cash and cash equivalents decreased to US$0.6mln at year-end, from US$11.1mln 12 months earlier, and net debt increased to US$51.3mln from US$39.6 due to the decrease in cash.
At the end of May 2923, Chaarat's cash balance stood at US$0.5mln, though a non-binding letter of intent and indicative term sheet were signed on 17 May with Xiwang International for a potential equity investment of US$250mln, followed by a preliminary investment agreement at the end of last month.
During 2023, working capital facility arrangements were put in place with a short-term loan provider, with US$2mln drawn down by the end of May, leaving another US$2mln available.
In a statement, Chaarat chief executive Mike Fraser said the results "reflect the challenging environment in Armenia", where there was a 23% appreciation of the Armenian dram rate, resulting in a decrease in EBITDA, on top of the higher energy costs and inflationary pressures due to the war in Ukraine.
He added: "It was disappointing that we were not able to secure a funding solution for our Tulkubash development project during the year. However, we continue our efforts to do so and in particular looking towards alternative project finance options."
In a separate statement, Chaarat announced the appointment of David Mackenzie as its chief financial officer with immediate effect. He has been acting as the interim chief financial officer since 1 February 2022.
Chaarat also said that Darin Cooper, its chief operating officer, will be leaving the business shortly to pursue other opportunities.