Scotgold Resources has reported a loss before taxation of A$9.5m during the first half of this financial year - up from A$5.3m during the same period in 2022.
However, Scotland’s first commercial gold producer did also see total revenues rise from A$6.4m to A$9.5m during the period.
Its interim results for the six months ended 31 December 2022 also revealed a reduction in cash reserves at that date, from A$168,000 at 30 June 2022 to A$67,000 at the end of last year.
Meanwhile, net debt stood at A$25m.
Production for six month period totalled 3,809 ounces of gold, with gold concentrate sales of £5.4m down from A$9.5m year-on-year.
The mine's first Scottish gold doré sales were made to jewellery companies in December, totalling £25,420.
On 9 February, the company undertook an equity fundraise to support the planned transition from tunnel development mining to long hole stoping, with 7,428,460 new ordinary shares issued, totalling gross proceeds of £3m, at a price of 40p per share.
Seven directors and a significant shareholder participated in the subscription, making an additional £574,000.
Further to the capital raise, Bridge Barn, a company owned and controlled by former chairman Nathaniel le Roux - and provider of debt funding to the company - agreed to defer a total of £2.5m capital repayments due during 2023 by up to nine months.
As reported on 27 March, Scotgold’s mine plan anticipated that 5,818 tonnes of mineralised ore would be mined in February and March 2023 ahead of the transition to long-hole stoping in the second quarter.
Actual tonnes mined are now expected to be between 550 and 600 in March and about 3,000 tonnes of waste to place into required areas for commencement of stope drilling.
The directors now believe that, in the event that the planned commencement of long hole stoping in April is delayed, or the anticipated tonnes of ore mined in April and the following months is significantly below the current mine plan, then a material uncertainty would exist that casts significant doubt over the ability of the consolidated entity to continue as a going concern.
In order to safeguard against this potential shortfall in working capital over the next few months, directors are in advanced discussions with its gold offtake partner - and are reviewing final documentation - to secure a $500,000 advance to assist with short-term working capital.
Directors have also discussed the provision of additional working capital, in the form of equity or a short-term convertible loan.
"The ability of the consolidated entity to continue as a going concern over the long term will remain dependent on the quantity and grade of ore mined and processed being within a reasonable tolerance of the forecast quantity and grade and adherence to the planned product shipment schedule," noted the stock exchange update.
Chairman Peter Hetherington commented: "The period under review, whilst challenging, has seen progress and important milestones being achieved at our Cononish gold mine, in Tyndrum, as we continue to develop Scotland’s first commercial gold mine towards full production.
"During the first half we implemented initiatives for the underground mining operation and processing plant to enable our operation to run more efficiently.
"Power and ventilation upgrades in the underground mine and de-bottlenecking of the process plant - floatation and tailings filtration - were completed as well as mine development in the underground mine, to allow three development drives, allowing the company to drive to the first stope mining area initially planned for the second quarter, as well as inclining to the 445 level to open even further development drives in late 2023."
Production for the three months ended 31 September 2022 totalled 2,004 ounces of gold, however this was lower than the 2,600 to 3,200 ounces targeted for the quarter, as a result of the delayed power and ventilation upgrades in the underground mine, which stalled mine development on the waste ramp.
During the three months to 31 December 2022, operational difficulties continued underground. December 2022 was impacted by changes in the short-term mine schedule to expedite continuous long hole stoping in the western areas of the mine, along with harsher than expected weather conditions.
Production totalled 1,805 ounces - against a previously forecasted 3,000 to 3,500 ounces of gold - and an additional 324 ounces was mined in December, but stored underground as weather conditions didn’t allow for the mining trucks to move the ore safely.
Hetherington added: "I would like to extend my appreciation to our colleagues here in Scotland who have worked with dedication during very challenging times.
"I would also like to extend my gratitude to all of our stakeholders for their continued support and as we continue to develop the mine during this critical time, we will update on developments and progress in this regard."
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