- The first part of 2020 was very disruptive for NTL, but the second half saw operations picking up.
- The second half saw the restructuring of the Company regarding the composition of the board.
- The Second-stage review will focus on specific focus areas.
The dual-listed Company, New Talisman Gold Mines Limited’s (NZX:NTL) was trading at NZ$0.005, down 16.67% at the time of writing on Monday. The company witnessed a fall after an almost 20% increase in its share price on last Friday.
NTL mines and explores on the Talisman Gold mine project located in Hauraki Gold Field.
Disruptions in the first half of 2020
COVID-19 pandemic caused several disruptions for NTL in the first half of 2020, but the second half saw the Company’s operations picking up.
In the second half of 2020, the Company embarked on the first stage of strategic review on how to restructure the Company, specifically with regard to composition of the board and short-term initiatives, which could help the Company scale up and recover.
According to the proposal, the business was divided into exploration and development units. It was decided that New Talisman Gold Mines Limited would focus on underground activities, which is its core business. The review also came up with the suggestion that along with the development building resources, reserves was also important.
Acquisition of Vanuatu Assets
In December 2020, the Company also acquired Vanuatu assets of Cantebury Resources. This was done through its wholly-owned subsidiary Coromandal Gold Limited. This acquisition gives a rare opportunity to have a part in the Pacific Rim.
The board also continued to maintain cost reduction measures by several methods, including reducing the number of consultants and using the in-house expertise only for preparing and permitting. The Company was able to have a cash flow of $1,869,706 by the end of 2020.
Going ahead, in the second-stage review, the board asked the management to provide the detailed reviews of specific areas of focus.
It was highlighted through the review that there was a need for a treatment solution for Talisman to cater to the full life of mine and production scenarios, and highlighting gravity recovery and other non-hazardous processing routes.
The board was able to reduce its costs by cutting down expenses on external consultants and building in-house talent.