On 3 May 2019, the shares of Troy Resources Limited (ASX: TRY), a gold producing and exploration company have been placed on a trading halt on ASX as per the company’s request. The trading halt is in accordance with the Listing Rule 17.1. pending an announcement related to capital raising. TRY anticipates that the trading halt will be lifted earlier of the commencement of the normal trading on 7 May 2019.
Current position of the company till date
On 30 April 2019, the company in its investor presentation report, highlighted that its key asset Karouni Gold Mine, Guyana is of the same size as the UK, which is a part of Caribbean community and follows British Legal and Parliamentary System. The mining is governed by a modern Mining Act.
The ore reserves of the company as on 30 June 2018 was noted at 120 koz at 2.43 g/t and mineral resources were recorded at 933 koz @2.1 g/t. The key shareholders of the company include Ruffer LLP with 39.9 million shares, equivalent to 8.2% shareholding. The board and management hold 9.9 million shares of the company, equivalent to 2% of the shareholding. During March 2019, the company reported a fall in the gold production to 1.9g/t from 2.2 g/t in December 2018.
The investor presentation also highlighted a few key focus areas of the company. The key focus includes a stabilized board. Since 2017, the board of the company has remained stable. With the addition of new members to the board, the board has further strengthened itself. The second key focus of the company is to increase its gold production. In 2017, the company produced 56,200 ounces of gold, which reached to 70,207 ounces in 2018. The next focus is to reduce the operating costs of the company. The AISC reduced from US$1,345 per ounce in 2017 to US$931 per ounce in 2018. The other key focus includes the elimination of the bank debt, where the company had repaid US$24 million in the last 18 months and US$3.7 million was outstanding till date. As the bank debt had almost been eliminated, the key focus of the company will now be at reducing the creditors. The company will also focus on the exploration work in the Ohio Creek Prospect which was acquired last year.
In the March 2019 quarter report, the company recorded the gold production at 13,333 ounces. The average head grade of ore treated for the March 2019 quarter was 1.87 g/t of gold with the recovery rate of 95.3%. From the sale of 14,124 ounces of gold, the sales revenue was noted at US$18.4 million for the March 2019 quarter. The company made the repayment of the US$4.50 million during the Q3 FY2019. The loan facility was re-negotiated during the period, and now the repayment will be made in two tranches. The final tranche would be repaid by 30 September 2019. The company also raised around $1.6 million through the Share Purchase Plan. By the end of the March 2019 quarter, the company had net cash and cash equivalent worth $10.5 million.
The shares of Troy Resources last traded on 2 May 2019 at a price of A$0.085. The company has a market capitalization of A$42.76 million and approximately 503.06 million outstanding shares.
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