London-listed miner Scotgold Resources’ stock crumbled 65% on Monday after the company warned that there is “significant doubt” over its ability to continue as a going concern.

The company behind the Cononish gold and silver mine, in Scotland, said that it was in discussions with its offtake partner to secure $500 000 to assist with short-term working capital.

The directors of the company may also be called upon to provide a short-term convertible loan should the need arise, the company said.

Scotgold explained that the mine’s performance had been below plan, mainly owing to lower-than-expected grades in the 430 West ore drive, resulting in the subsequent decision to bring forward long hole stope mining. The company noted that, should the start of long hole stoping in April be delayed, or the anticipated tonnes of ore mined in April and the following months be below the current mine plan, then a “material uncertainty would exist that casts significant doubt over its ability of the consolidated entity to continue as a going concern in the very immediate term”.

Preparation works started last month for long-hole mining in the eastern section of the 430 West ore drive over an initial stoping length of 115 m. Long hole stope drilling started in the first stope panel during the week of March 20. Long hole stope mining is on track to start in eight days time with first blasting.

Mining will also continue on the 445 incline ramp to ensure access to the 445 level and establish further development drives in areas where the original resource and grade control models support high-confidence mineralisation. This area is also being designed and rescheduled to support continuous long hole stoping being achieved in the later part of 2023 as per the 2023 mine plan announced previously with the aim of achieving full phase production by the fourth quarter.

Meanwhile, Scotgold also reported that the email accounts of its executive directors had been hacked and that specious emails had been sent in their names to numerous people.

“Whilst we believe the vulnerability has been fixed it is impossible to ever be certain of this. The police have also been informed on this matter and will continue to investigate.”

Scotgold’s stock traded at 13.15p a share on Monday, down from Friday’s close of 28p a share.