Operational snafu sees Beadell miss gold production target at Brazilian mine
Link copied to
Beadell Resources has conceded it will miss its final quarter gold production target for the Tucano mine in Brazil due to operational hiccups.
Investors were a little disappointed that Beadell (ASX:BDR) will only produce about 50,000 ounces for the quarter, with shares dipping 5.6 per cent to 17c this morning.
Beadell is not far from the 52-week low of 15c it hit earlier in December. It has lost roughly 56 per cent of its value since early February, when it reached its highest point of 39c for the year.
The company previously signalled it expected the mine to deliver about 60,000 ounces of gold at a head grade of 2.2 grams per tonne.
But Beadell didn’t achieve that grade because of lower-than-forecast dig rates resulting from unplanned minor blasting, the need for additional dewatering, and an early start to the wet season.
“Despite a concerted effort to recover from a poor June quarter, a number of minor issues have resulted in a short-term deferral of our forecast December quarter production into early 2018,” chief Simon Jackson told investors.
“While this is disappointing, December quarter production is likely to be more than 70 per cent higher than the September quarter.”
December-quarter production from the Tucano mine will be the fourth highest quarter and the highest since 2014.
Beadell is currently working on upgrading the processing plant at Tucano, which is on track for commissioning by mid-2018.
“As we move into 2018, we look forward to the completion of the plant upgrade and increased ability to deliver higher volumes of fresh ore to the plant,” Mr Jackson said.
“This should lead to more consistent quarterly production and cashflow.”
Gold production for 2017 is forecast to fall at the lower end of Beadell’s guidance of 140,000 to 150,000 ounces.