- AustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
Dacian Gold Crashes After Cutting Production Guidance
Shares of Dacian Gold plunged by more than 67 percent when the miner announced it is lowering production guidance for the June quarter.
Dacian Gold (ASX:DCN) plummeted over 67 percent on Wednesday (June 5) after it announced it is lowering its production guidance for the June quarter at its Mount Morgans mine.
The company revealed that production guidance at Westralia, an area of Mount Morgans, has been dropped to a range of 36,000 ounces to 38,000 ounces of gold, down from the original guidance of 50,000 ounces to 55,000 ounces.
The miner blamed the revision on underground contractor performance issues that caused lower productivity than Dacian had anticipated, as well as a decline in grade performance.
Additionally, the company noted that costs will increase from between AU$1,050 and AU$1,150 per ounce to an all-in sustaining cost (AISC) of between AU$1,500 and AU$1,600 per ounce.
Despite the production downgrade and increased costs, the miner believes Dacian is in a good position to improve. “Whilst the downgraded June quarter production guidance is disappointing, the company notes improvements in both equipment availability and mine development advance at Westralia are clearly evident and heading in the right direction,” Rohan Williams, executive chairman, stated.
“Many of the issues with fleet availability have already been resolved and a focus on capital development in the short term will open up more work areas, thus improving production going forward.”
Looking ahead, Dacian estimates that production for the 2020 financial year will be in the range of 150,000 to 170,000 ounces of gold at an AISC of AU$1,350 to AU$1,450 per ounce.
The miner said it will release an updated five year mine plan at the end of this month, with its preliminary review pointing to average production of 160,000 to 180,000 ounces per year.
Dacian noted that it has confidence in the success of ongoing exploration, adding that indicative production levels of the five year mine plan will continue “well beyond” five years.
Finally, the company confirmed that it has garnered numerous unsolicited enquiries from corporate entities, prompting it to begin a reviewing process where the miner will consider potential corporate and funding initiatives, which could result in a “change of control transaction.”
The Westralia deposit’s mineral resource currently stands at about 10 million tonnes at 4.7 grams per tonne for approximately 1.5 million ounces. The deposit is the culmination of over 93,000 meters of drilling that has been conducted by Dacian since 2012.
As of 10:47 a.m. EDT on Wednesday, Dacian was down 67.51 percent, trading at AU$0.52.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.
The Beginner’s Guide to Investing in Gold (Australia Edition)
Ready to invest in gold? Our beginner's guide makes it simple to get started.
Download your investing guide today.
Learn About Exciting Investing Opportunities in the Gold Sector
Your Newsletter Preferences
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.
Nicole is the Editorial Content Coordinator at INN, helping to create and manage educational content with a primary focus on gold. Nicole found her passion for all things finance while working in syndication and investor relations for a boutique investment banking company. Nicole has her BA in media studies and a postgrad in public relations. She holds a diverse writing portfolio covering topics such as finance, lifestyle and travel.
Learn about our editorial policies.