Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Great Panther Mining (TSE: GPR) has temporarily halted mining activities in Urucum Central South (UCS) at Tucano gold mine in Amapa State, Brazil, after detecting movements in the west wall of the south-central portion of the open pit.
According to the company, heavy rainfall, well above seasonal average, triggered higher phreatic levels in the west wall, impacting slope stability.
The mill will continue to receive ore from the Urucum North open pit and from stockpiles, Great Panther said.
“We are working with our consultants to make operations safe, with the expectation that mining of the higher-grade gold ore in the UCS pit will start back up again in the third quarter of this year,” CEO Rob Henderson said in a press release.
“As a consequence, 2021 consolidated guidance is being reduced by 10,000 ounces to 125,000 to 140,000 gold equivalent ounces,” he added.
The second half of 2021 is expected to account for 60% of this guidance.
Midday Tuesday, Great Panther’s stock was down 5% on the TSE. The company has a C$344 million market capitalization.
