Allied Nevada stock falters on lowered guidance, worsening financial condition
TORONTO (miningweekly.com) – The TSX-listed stock of Reno, Nevada-based gold miner Allied Nevada Gold on Friday fell by as much as 34% after the company announced that it would this year not produce as much precious metals as previously expected.
The dual-listed miner reported that it expected full-year metal sales to be 210 000 oz to 220 000 oz of gold and 1.8-million ounces to 1.9-million ounces of silver, which was lower than previous guidance of between 220 000 oz and 230 000 oz of gold and 1.9-million ounces and 2-million ounces of silver.
The lower sales were the result of Allied Nevada encountering a significant amount of acid leach material in the planned mining areas, which had an adverse effect on drilling and processing.
As of the end of November, the gold miner had $1.3-million in cash and cash equivalents, and only $12.8-million remaining undrawn under a revolving credit facility. The company had recently entered into sales agreements for proceeds of $8.9-million, of which $5.4-million was used to eliminate capital leases.
Allied Nevada, which late last month announced that it had reduced the capital cost of the first phase of its Hycroft mill expansion project by 18%, said it continued to evaluate all financing options and strategies that could improve its current liquidity and financial condition.
The stock closed down 9.17% at C$1.58 apiece on the TSX on Friday.
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