Aim-listed Chaarat Gold says although the impact of coronavirus on the global economy is significant, demand for the company’s products has remained relatively healthy.
The company has seen positive trends in cost reduction in both the jurisdictions that it operates in, thanks to a declining fuel price and depreciation of local currencies against the US dollar.
Meanwhile, Chaarat is monitoring the Covid-19 situations in Armenia and Kyrgyzstan, where it has an operating mine and assets at various stages of development, respectively.
The Kapan mine, in Armenia, continues to operate as usual, while the construction speed has been slowed down at the Tulkubash project, in Kyrgyzstan, owing to a national state of emergency declared in the country.
The delay in construction will likely cause the first gold pour of the project to be moved by six months from late 2021 to the third quarter of 2022; however, the oil price drop and depreciation of the Kyrgyz currency will likely have a favourable economic impact for the project.
To help curb the spread of the coronavirus, the company has restricted all travel by its employees and limited visitors to its facilities, while staff are working from home where possible.
The company is also supporting the communities during this difficult time of the pandemic. Chaarat is involved in community support programmes including procurement of 10 000 Covid-19 testing kits for distribution among communities in Kapan, Armenia, and the Chatkal region, in Kyrgyzstan.
Chaarat says it will also donate funds for procurement of the equipment for a new laboratory for Covid-19 testing in Kyrgyzstan, together with other miners in the area, while it has delivered ten tonnes of flour and one tonne of sanitiser to communities in Chatkal.
In Kapan, Chaarat is working with local companies to supply the regional hospital with masks, sanitiser and goggles.
“As we continue our efforts to build a resilient business with a strong balance sheet, during this uncertain period, we are taking actions to further reduce costs and streamline processes to ensure the effectiveness and stability of the company. We will also continue to evaluate every opportunity for the company to grow during this period,” says Chaarat.