In a year where “significant progress” was made, in spite of a range of challenges to people and businesses, as a result of Covid-19, Aim-listed gold producer Katoro Gold recovered from is earnings loss for the six months to June 30, 2020, and ended with basic and diluted earnings a share standing at 0.17p.
This is an improvement on the loss of 0.28p in the prior comparable period in 2019.
However, chairperson Louis Coetzee says that, despite the challenges presented by the pandemic, Katoro has advanced the Haneti polymetallic project, in Tanzania, to a drill-ready status with several high-priority targets.
Haneti is a large-scale polymetallic project covering an area of about 5 000 km2, where the principle target zone is an 80-km-long ultramafic belt with grades from surface sampling of up to 13.6% nickel and 2.33g/t combined platinum-group metals (PGMs).
During the reporting period, Katoro also developed plans to implement a drill programme at Haneti, focused on nickel sulphide and PGM targets at Mihanza Hill and Mwaka Hill, the two priority targets.
In parallel to this activity, Katoro received approaches with a view to earn-in, joint venture (JV) or other similar structures in respect of the project, with a primary focus on the nickel sulphide potential. Discussions with Katoro’s JV partner, Power Metal Resources, continue.
Katoro also entered into a JV agreement for the near-term producing Blyvoor gold tailings project, in South Africa.
On a corporate level, the company disposed of Imweru for a total staged consideration of $1-million and a 1.5% net smelter royalty on all future gold production from Imweru.
Other financial results for the interim period include an operating loss of £364 743, while the total comprehensive loss was £356 954.