Scotgold Resources appoints administrators putting over 80 jobs at risk

Scotgold Resources appoints administrators putting over 80 jobs at risk

Scotgold Resources has appointed Daniel Bredenkamp and Christopher Pattinson of Australia-based Pitcher Partners Accountants and Advisors (WA) as joint and several administrators.

The move has placed more than 80 jobs at risk at Scotland’s sole commercial gold mine firm.

On Friday November 24, the firm announced via a stock exchange filing that it had appointed the firm as administrators.

Pitcher Partners Accountants and Advisors (WA) has assumed control of the company and will work with the Scotgold board during the administration period to maximise the outcome for the firm’s stakeholders.

Earlier this month, the firm announced that it was in “advanced financing discussions with a strategic investor. Unfortunately, these discussions have not resulted in an investment at this time.” It revealed that as a result of this the directors, having assessed the options open to them, are now considering the appointment of administrators over the coming days, the Scotsman reports. 

The announcement comes after months of uncertainty about the firm’s future. In the summer, gold concentrate shipments totalled 235 tonnes with a sales value of £1.9 million. Scottish gold doré sales made to Scottish jewellery companies during those months totalled just £46,160. In July, the firm said it had begun a third-party review of its operations after recent “disappointing” production results.

In June this year, Phil Day resigned as chief executive, citing a “desire to spend more time with his family members in Australia”.

In May, Scotgold Resources said it had raised £2m, but stressed yet again that its ability to continue as a going concern was “entirely dependent” on the quantity of ore that produced henceforth, and in January 2022 had cheered record-breaking production figures.

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