The value of Canadian mining company Guyana Goldfields on Wednesday fell to its lowest in more than ten years, as the embattled miner said that its Aurora mine, in South America, would fail to meet its guidance and that it had started a mine plan review.

The TSX-listed stock of Guyana fell to C$0.74 a share on Wednesday, which is a 52-week low and also the lowest point since November 2008.

Guyana has been under pressure from investors who complain that the company has lost significant value in the last three years, owing to the underperformance of the Aurora mine. The miner and dissenting shareholders, led by founder Patrick Sheridan, settled in April with the appointment of Allen Palmiere as director and interim CEO.

Palmiere said on Wednesday that the company had started a “thorough” review of the Aurora life-of-mine (LoM) plan and that a “comprehensive mine, production and cost savings review plan” was under way to increase productivity and profitability.

“Since assuming the interim CEO role on July 31, 2019, I've taken a hands-on, first principles approach to reviewing all operations, identifying the challenges and opportunities, and we are in the process of reviewing the overall mine plan.

“Our reviews have confirmed that we have a sound asset, including geological resources and a robust processing facility, however, the mine plan requires further review in order to maximise the value of Aurora,” he said.

Palmier reported that he had made changes to the operating team, modified operating procedures and enhanced reporting.

Roscoe Postle Associates (RPA) would assist in the review and would build on the prior work conducted that culminated in the release of an updated technical report of the Aurora mine in March this year.

Part of the review included assessing the cost savings initiatives, which were under way as a result of the implementation of the management optimisation plan announced earlier this year.

He said that the timing of cost savings implementation might be impacted by the outcomes of the LoM review and detailed mine planning that was under way.

“Management does not expect the review to materially change the total reserves to be mined over the previously published RPA report. The detailed review and mine planning work under way may see a change in the sequence of openpit development and ore release, timing of access to Rory's Knoll underground and mining methods."

Meanwhile, the mine would also fail to meet its guidance for the year, but the company said it would not release a new guidance while the review was under way.

The full details of the review were expected in the first quarter of 2020.

The Aurora mine produced 22 100 oz of gold, amounting to 96 000 oz of gold produced in the first nine months of the year.

Gold sales of 23 500 oz, at a total cash cost of $1 372/oz, were reported. Cost of sales were $1 864/oz and all-in sustaining costs were $1 882/oz.

The mining rate averaged 51 500 t/d, an 11% decrease in the mining rate compared with the previous quarter owing to pit room constraints imposed by smaller benches and reduced working faces, heavy rainfall and a three-day work stoppage as a result of the workforce blocking the delivery of ore.

Fourth-quarter gold production is expected to improve over the third quarter as mining moves back into the primary ore zone within Rory's Knoll.