Shares in Gascoyne Resources have fallen more than 12 per cent today, after the gold producer downgraded its production guidance for the second time in less than a month.
The company said mining output rates had been reduced due to a heavy downpour on November 10, when more than 50 millimetres of rain fell during a 12-hour period.
The gold miner, which began production at its Dalgaranga project in May, has revised its guidance for the December to quarter to between 17,000 ounces to 18,000oz, down from the previous estimate of 19,000oz to 22,000oz.
“Mining production rates have reduced since the end of October due to both weather and tighter mining conditions,” Gascoyne said in a statement to the ASX.
“A one-in-20-year rain event (52mm in 12 hrs) effectively closed all three pits for 24 hours and has had a continuing effect over the last two weeks due to saturated ground conditions.
“An unplanned mill shut down occurred in mid-November to replace split conveyor belts, which required the feed of material from the base of the coarse ore stockpile.
“The ramp-up of the project is continuing, however as a result of the above factors impacting mill feed grade, production guidance for the quarter is revised to 17,000 to 18,000oz. “
The gold producer said throughput had improved in November due to the installation of six hardox grates.
The company held its annual meeting today, with all motions passing.
The news comes after the company’s share price plunged on October 29 after the company disclosed managing director Michael Dunbar and chair Ian Murray had both resigned.
Mr Murray was appointed chair only three weeks previous to his resignation.
Gascoyne also reduced its forecast production down from 25,000oz in the same announcement.
The company’s shares fell 12.4 per cent to 9.2 cents each today, having traded as high as 61 cents per share in May.
