Burkina Faso – Despite recording significant expenditure during the construction of the Karma gold mine in Burkina Faso, TSX-listed True Gold Mining is nearing the finish line with the start of production only a few months away.
For the nine months ended September 30, 2015, True Gold recorded a net loss of $11.1 million compared to net losses of $2.7 million and $12.7 million for the nine months ended September 30, 2014.
The most significant contributor to the loss was the $5.1 million write-off of equipment damaged during a demonstration at the mine.
True Gold president and CEO Christian Milau is happy with the progress that the team continues to make at Karma, most notably with the commencement of mining at the GGII deposit, adding that True Gold is focused on completing construction and operating the low cost Karma mine with a strategy to become a mid-tier producer through organic and strategic growth opportunities.
The Karma mine, which is in full construction with over 1 100 staff and contractors on site, remains on track for first gold pour by the end of the first quarter of 2016.
Overall the project is approximately 77% complete, and is on budget and on schedule.
Despite a drawdown of cash and short term investments from the $47.5 million at December 31, 2014, the Karma project remains fully funded with $20.7 million in cash as of September 30, 2015. The company also has up to $48.4 million available under it finance facility with approximately $45.6 million of project cost left to spend., the company said in a statement on Tuesday.