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Intercontinental Gold post 137pc revenue increase but withdraws guidance

Mining
TSXV:ICAU
10 June 2020 13:26 (EDT)

Intercontinental Gold (TSXV:ICAU) has revealed a huge revenue increase in 2019, but has still withdraw its 2020 guidance.

In the company’s full-year financial report, revenue was up 137 per cent to $321.8 million, compared to $135.5 million in 2018.

This resulted in a 45 per cent reduction in net losses, moving to a loss of $600,000 compared to $1,180,310 net loss the year before.

The company also posted positive adjusted earnings of $992,119, up substantially compared to $49,043 in the year before.

These results were heading even higher, before the company was forced shut down its mining operations half-way through the fourth quarter of 2019.

In November 2019, there was a significant period of civil unrest in Bolivia, surrounding the federal election. Due to the unrest the company felt it was prudent to scale back its operations temporarily. 

Intercontinental Gold has also withdrawn its 2020 guidance, as the company’s Bolivian operations have now been affected by the ongoing coronavirus pandemic.

Gorden Glenn, CEO of Intercontinental Gold, appears pleased with the results, given the operational shutdown. He went on to say the pandemic has motivated the company to withdraw its guidance. 

“The impact was a loss of significant revenue and associated trading profits in the fourth quarter which in turn dragged full year results down.

“Heading into fiscal 2020 we were forecasting another year of strong growth. However, like many businesses, our outlook for 2020 has been negatively impacted by another temporary business closure associated with COVID-19 global pandemic,” he said. 

Intercontinental Gold (ICAU) is in the grey and is trading at 23 cents per share. 

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