Ascot Resources reports significant financial losses for 2024

Ascot Resources Ltd. has announced its financial results for the year ending December 31, 2024. The company, based in Vancouver, reported a significant net loss of $31.5 million, worsening from a loss of $10.4 million in 2023. In the fourth quarter of 2024, Ascot lost $17 million, compared to a profit of $1.7 million in the same period last year. The increased losses were mainly due to changes in fair value of derivatives and losses related to credit facilities. As of the end of 2024, the company had cash and cash equivalents totaling approximately $28 million but faced a working capital deficiency of $47.5 million. This situation was partly due to high development costs for its mining operations. Despite these challenges, Ascot managed to secure temporary waivers from lenders to avoid defaults on its credit arrangements. The waivers extend until September 30, 2025, allowing the company some breathing room as it works to restart operations. Looking ahead, Ascot plans to focus on transitioning from construction to actual gold production at its Premier Gold Mine. The management remains optimistic about future cash flows, assuming operations resume on schedule in the third quarter of 2025. However, if there are further delays, additional funding may be needed.