JOHANNESBURG (miningweekly.com) – Dual-listed Central Rand Gold (CRG) on Monday said it had widened its half-year loss by $3.25-million on the back of a 26% decrease in gold production.

It reported a loss of $4.87-million for the six months to the end of June, compared with the loss of $1.62-million recorded in the comparable period last year.

The gold producer delivered a headline and basic loss a share of 15.22c during the interim period, compared with the headline loss of 3.70c and basic loss of 5.06c during the corresponding period the year before.

Gold production declined from 8 246 oz in the first half of 2012, to 6 097 oz during the interim period under review.

All-in cash operating costs per ounce rose to $2 236, from $1 695 in the six months to June 2012.

“There is no doubt that the first half of the 2013 financial year was a tough six months for the company, with overall performance being negatively impacted by continued low metallurgical plant availability, lower mined grade and a depressed gold price,” CRG commented.

The firm partially offset the impact of the challenges by strong results from underground mining, while “excellent” second-quarter improvements were made in the mine call factor.

The net cash position of the company at June was $1.3-million.

Meanwhile, CRG said it would move to immediately draw down $3.325-million of a $7.25-million Redstone Capital convertible loan note investment, after shareholders approved the deal on Monday.

The gold producer warned prior to the shareholders meeting that a failure to secure urgent funding could jeopardise its status as a going concern.

About $2-million of the first draw-down would be used to improve and replace the existing crushing circuit and Bateman mill and increase both the plant availability and capacity from 16 500 t/m to between 20 000t/m and 25 000 t/m.

The remainder would be allocated for general working capital requirements.

The $3.75-million balance would be drawn down by October for the acquisition of additional underground equipment to develop and expand CRG’s underground mining operations at CMR West and CMR East.

The shareholders also approved shifting of the company’s trade from the main boards of the LSE and the JSE to the Aim and the AltX respectively, which was expected to provide a market and environment more suited to the company’s current size.

CRG’s share price was up 23.08% by 16:00 on Monday.