Guyana Goldfields to miss guidance, stock falls to lowest since 2008

Jackson Chen | October 31, 2019 | 12:18 pm News Latin America Gold

Guyana Goldfields CEO to go as miner settles proxy fight with founder

Last year Guyana updated the amount of gold in proven and probable reserves at Aurora by subtracting almost 1.7 million ounces from what it published in 2018. (Image of Aurora gold mine. Courtesy of Guyana Goldfields)

Shares of Guyana Goldfields (TSX:GUY) fell to the lowest in more than ten years on Thursday, as the embattled Canadian miner released its latest quarterly report noting its Aurora mine would fail to meet its production guidance. The company added that a mine plan review is underway.

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

Operations at Aurora were temporarily suspended in July due to work stoppage. The controversial mine produced 22,100 oz gold, amounting to 96,000 oz produced in the first nine months of the year.

“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,” Palmiere stated in a media release.

According to Palmiere, the company has started a “comprehensive mine, production and cost savings review plan to make the necessary changes and improvements to increase productivity and profitability.”

Full details of the review are expected in the first quarter of 2020.