Red 5 punished for guidance downgrade

RED 5 shares took a hit this morning after the gold producer announced lower expected quarterly production from its newly acquired Darlot mine in Western Australia’s Eastern Goldfields.

Red 5 punished for guidance downgrade Red 5 punished for guidance downgrade Red 5 punished for guidance downgrade Red 5 punished for guidance downgrade Red 5 punished for guidance downgrade

Red 5 had flagged March quarter production of 16,000-19,000 ounces of gold from Darlot, but output has been impacted by gear and clutch issues at the mill.

If milling resumes by the end of the week, gold production for the quarter will likely be 12,000-15,000oz.

The drop will also impact 2018 guidance of 85,000-95,000oz.

Darlot got off to a strong start for Red 5, producing 17,777oz of gold – above budget of 13,000-16,000oz – at all-in sustaining costs of A$1291 an ounce in the December quarter, its first under Red 5 ownership.

The Darlot operation posted a net profit before tax of $2.8 million for Red 5, though the company posted a half-year group net loss after tax of $...

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