Chaarat Gold Holdings, the company that once tried buying Centerra’s Kumtor mine in the Kyrgyz Republic, revealed on Friday that is considering the sale of its only operating mine, Kapan, in Armenia.

The announcement comes as Kapan’s production in the first six months of the year reached 26,523 gold equivalent ounces, down 11.7% from the 30,022 gold equivalent ounces it produced in the same period of 2022. 

The fall, Chart said, was mainly driven by decreased access to the orebody during the period.

All-in-sustaining cash cost of production rose 9.5% to $1,556 per ounce, driven by the Armenian dram’s appreciation and reduced gold production.

Looking ahead, Chaarat expects output for the second half to increase on the back of improvements in plant capacity.

The company said it remains in discussions with investment management company Xiwang for a potential cash-injection toward its Kyrgyz assets, particularly to develop the Tulkubash open pit project.

Chaarat said earlier this year that it required further financing by the end of the third quarter to sustain corporate activities and to move Tulkubash forward.

Kapan mine gold production guidance for 2023 remains at 50,000-55,000 ounces of own-ore output and additional 5,000-10,000 ounces of third-party ore production.