Dacian Gold share price plunges 67%
Gold miner Dacian Gold’s share price was hammered on Wednesday as the company revised its production guidance and announced the start of a “strategic review to consider corporate approaches”.
The operator of the Mt Morgans mine, in Western Australia, lowered its production guidance for the June quarter to a range of 36 000 oz to 68 000 oz, from a previous guidance of 50 000 oz to 55 000 oz.
The company warned that costs would increase from between A$1 050/oz and A$1 150/oz, to between an all-in sustaining cost (AISC) of between A$1 500/oz and A$1 600/oz.
Dacian said the guidance revision followed underground contractor performance issues, which resulted in lower productivity than previously anticipated. A ball mill motor also failed on Saturday which resulted in the suspension of the treatment plant for three days.
The miner said production for the 2020 financial year was likely to be in the range of 150 000 oz to 170 000 oz at an AISC of A$1 350/oz to A$1 450/oz. An updated five-year mine plan would be released by the end of June, with the company’s preliminary review anticipating average production of 160 000 oz/y to 180 000 oz/y.
Dacian said that it was confident that ongoing exploration success would continue the indicative production levels of the five year mine plan “well beyond” five years.
Meanwhile, the company confirmed that it had received several unsolicited enquiries from corporate entities and that it had started a review to consider potential corporate and funding initiatives. These might culminate in a “change of control transaction”.
Dacian’s share price crashed on the news, falling by 67.5% to A$0.52 a share, which is the lowest level since September 2015.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation