By Scott Wright
SCOTGOLD Resources has unveiled a new chief executive as it revealed coronavirus had significantly impacted plans to mine for gold at Cononish, near Tyndrum, and put its cash position under pressure.
The company developing Scotland’s first commercial gold mine said Richard Gray, who has been in post since 2014, will be replaced by industry veteran Phillip Day on April 1.
The change was announced as Scotgold said Covid-19 has had a “significant impact” on moves to ramp up production at Cononish. It said coronavirus led to a shutdown in 2020, reduced access to specialist suppliers and consultants from overseas and, more recently, the recruitment and training of staff. This has had a “negative impact” on its cash position, Scotgold said.
The company is now investigating short-term debt financing solutions to ensure it has enough working capital during the production ramp-up, which may involve accessing the Coronavirus Business Interruption Loan Scheme. Directors are “confident these funds will be available if required.”
Scotgold does not expect “24/6” operations to commence before the end of March.
Mr Day, who joins with more than 25 years’ industry experience, was most recently head of technical and operations at mining-focused Pala Investments.
Mr Gray will remain on the board as a non-executive director. Chris Sangster, Scotgold’s founding chief executive, has resigned as a non-executive director to pursue other business interests.
Chairman Nat Le Roux said: “Richard has overseen a transformation at Scotgold from explorer to developer and ultimately the current ramp up to a production company, following first gold pour at Cononish on 30 November 2020. Thanks to his stewardship and service, Cononish will be Scotland’s first commercial gold mine.”
Shares closed down 2.75 per cent, at 71p.
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