Chaarat Gold is a gold mining company which owns the Kapan operating mine in Armenia as well as Tulkubash and Kyzyltash Gold Projects in the Kyrgyz Republic. The Company has a clear strategy to build a leading emerging markets gold company with an initial focus on Central Asia and the FSU through organic growth and selective M&A.
Located in the prolific Tien Shan gold belt, the Chaarat Project has the potential to become the next multimillion-ounce producer alongside other large mines in the area. An extensive drilling programme and feasibility studies carried out over many years have revealed a rich deposit of high-grade ore in the Tulkubash, Contact and Main zones of the deposit.
The Company continues to be very encouraged by the ongoing results of its drilling programme at Tulkubash. Discovery costs per ounce and ounces discovered per metre drilled are outstanding and continue to validate belief that Tulkubash will continue to grow into a world-class gold deposit.
2018 was a year of significant change for Chaarat, culminating in the successful acquisition of Kapan Mining and Processing Company for a consideration of US$55 million at an attractive price for the Company and its shareholders. The Kapan acquisition is an excellent and complementary addition to Chaarat’s portfolio, transforming the Company from developer to producer with three solid assets in two jurisdictions. In 2017, the Kapan mine produced c.50 koz Au Eq. generating more than US$20 mm EBITDA and had gross assets of US$ 96 mm. Looking ahead, Chaarat anticipates group production of approximately 65 Koz Au Eq in 2019.
The Company continues to pursue other selected M&A targets and believes Chaarat is well positioned to be a driver of consolidation in Central Asia and the former Soviet Union.
Chaarat established a first-class team in 2018, reinvigorating the Board with the addition of two independent NEDs and a new full management team with Artem Volynets appointed as Chief Executive Officer in June 2018.
Chaarat aims to create value for its shareholders, employees and communities from its high-quality gold and mineral deposits by building relationships based on trust and operating to the best environmental, social and employment standards. The Company remains firmly focused on adhering to the best principles and standards of sustainable development and responsible mining. Chaarat places significant value on the resources that it mines, the care of its employees and the respect of its local host communities.
Countries of Operation: Kyrgyz Republic | Armenia
Project Status: Exploration | Development | Production
Plans and Latest Developments:
Chaarat’s plan is to build the leading gold company in FSU region via organic growth and M&A
Over the last year Chaarat:
- Established completely new first class management team with first class global mining expertise and fully reinvigorated the Board
- Developed new vision and strategy
- Transformed the company into a producer through highly value accretive acquisition of Kapan operating mine in Armenia
- Completed more than 20,000 m of drilling at Tulkubash project in the Kyrgyz Republic, delivering a 67% increase in M&I resources
Why should investors invest in you?
- A proven track record of delivering shareholder value with an ambitious goal to become the leading gold company in FSU region
- A highly experienced management team with independent Board oversight
- An incentive programme fully aligned with shareholder value creation with no cash bonuses to senior management over the next three years
- The Kapan mine in Armenia has substantial opportunities for operational and life of mine improvements
- Projects in the Kyrgyz Republic (Tulkubash and Kyzyltash) have massive growth potential
- ESG is core to the Company’s culture, strategy and execution
- Chaarat pursues accretive M&A and creatively structures deals to minimise shareholder dilution
Board of Directors:
- Martin Andersson | Executive Chairman
- Martin Wiwen-Nilsson | Non-Executive Director
- Gordon Wylie | Sr. Independent Director and Deputy Chairman
- Artem Volynets | Executive Director
- Robert D Benbow | Executive Director
- Robert Edwards | Non-Executive Director
- Dr Hussein Barma | Independent Non-Executive Director
- Artem Volynets | Chief Executive Officer
- Chris Eger | Chief Financial Officer
- Robert D Benbow | Chief Operating Officer
Artem Volynets, Chief Executive Officer Chaarat Gold, will be joining the line up of speakers at Mines and Money Asia 2019. Download the programme now.