The share price of Galena Mining hit a low on Monday, as the company released its latest quarterly results and announced an updated guidance for the 2023 calendar year.
The base metals junior, which is ramping up the 60%-owed Abra mine in the Gascoyne region of Western Australia, lowered its lead metal production guidance.
The firm now expects to produce between 40 000 t and 45 000 t of lead, from a previous range of 50 000 t to 60 000 t. Its silver metal production guidance of 325 000 oz to 425 000 oz was maintained.
Galena explained that the updated guidance for 2023 stemmed from a slower-than-expected ramp-up in lead grade during the June and September quarters.
During the September quarter, the company mined 293 919 t of ore at 5.5% lead and 19 g/t silver, and processed 283 458 t at 5% lead and 21.1 g/t silver.
MD Tony James said that continued improvement was achieved on a quarter-on-quarter basis and that this improvement was expected to continue in the December quarter, with production edging closer to steady state.
Three lead concentrate shipments, totalling 21 626 t, have been completed during the quarter, more than doubling revenue from the previous quarter to A$45.5-million and generating positive cash flows.
James added that cash levels should start to build in the December quarter. At the end of September, Galena had a cash balance of A$14.4-million.
The Abra opening ceremony was held on September 13.