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Gold is a mainstay of the Ghanaian economy, accounting for nearly half of exports in 2023.
Harte Gold (TSE: HRT) has lowered its production guidance and hiked its cost estimates for 2021.
The company, which operates the Sugar Zone mine in Ontario, lowered its guidance by 10,000 ounces to between 50,000 ounces and 55,000 ounces, at an all-in sustaining cost of $1,800/oz to $2,200/oz, compared with its previous target range of $1,400/oz to $1,550/oz.
Cash on hand at March 31, 2021 was $21.1 million ($8.2 million at December 31, 2020).
The miner said will require additional funding within the next few months.
“Although we have continued to make good progress over the past three quarters, we also continue to face challenges that are preventing us from achieving our previous targets and stated guidance,” CEO Frazer Bourchier said in a press release.
“Data tracking mechanisms that I implemented in late 2020, and continued to enhance in the first quarter of 2021, began to reveal more recently our critical constraints,” Bourchier said.
The miner noted that it would not generate sufficient cash from operations to fully fund its planned investment activities and debt service obligations, including $3.3-million principal repayment to BNP due at the end of next month.
The company reported total production of 11,776 ounces for Q1 2021, a 9% increase over the previous quarter.
Harte announced in January plans to go ahead with an expansion of its Sugar Zone mine to 1,200 t/d, from the current 800 t/d throughput, based on strong feasibility study economics.
Probable reserves now total 3.5 million tonnes grading 7.18 g/t gold, with indicated resources of 2.8 million tonnes at 11.87 g/t gold. Additional inferred resources stand at 1.9 million tonnes grading 9.45 g/t gold.
Midday Friday, Harte’s stock was down 13% on the TSE. The company has a C$135 million market capitalization.
