Troy flags lower-than-expected FY19 gold production after pit wall slip
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Junior gold producer Troy Resources has cut its production expectations for FY19 following a small wall failure at its Karouni project in Guyana.
The company (ASX:TRY) had initially set a target of 65,000 to 75,000 ounces, but has revised that to 62,000 to 65,000 ounces.
Troy reported a “small failure” of the northern wall in the Smarts 3 pit in mid-October.
After inspecting the failed structure, Troy decided to halt mining until a review by geotechnical consultants had been completed.
It has now received a new mining plan that envisages gold production of 14,000 to 15,000 ounces for December and 30,000 to 32,000 ounces for the first six months of next year.
Because of the impact on cash flow, Troy has also had to negotiate a new repayment schedule with Investec Bank for the $8.2m it still owes.
The outstanding balance will still be made in two payments, but the amount that will be paid back in each transaction has changed.
Troy is now in a trading halt pending news of a capital raising.