- Gascoyne Resources (GCY) has updated its FY21 and FY22 production guidance for its Dalgaranga gold operations in WA
- The company expects 76,000 ounces and 78,000 ounces to be produced this year, which is slightly lower than its original guidance of up to 80,000 ounces
- GCY’s production guidance for FY22 is between 70,000 and 80,000 ounces, which it states is consistent with July 2020’s life-of-mine projections
- The miner’s all-in sustaining costs (AISC) for FY21 is also slightly higher, with an increase of up to $25 per ounce flagged
- Additionally, Gascoyne’s FY22 AISC are expected to tip $1700 per ounce, while its FY23 and FY24 production guidance sits at 70,000 to 80,000 ounces
- In terms of finances, GCY has warned of a non-cash impairment expense of between $65 million and $90 million for FY21
- Gascoyne Resources’ shares dropped over 15 per cent in early trade on the back of today’s production guidance news
- Company shares are currently trading down 14.9 per cent at 46.5 cents each
Gascoyne Resources (GCY) has provided an update on its FY21 and FY22 production guidance for the Dalgaranga gold operations in WA.
The company is expecting between 76,000 ounces and 78,000 ounces to be produced in FY21, which is slightly lower than its original guidance of up to 80,000 ounces.
The West Australian miner’s all-in sustaining costs (AISC) for FY21 are also slightly higher at $1275 per ounce to $1325 per ounce, up from its original estimate of $1200 per ounce to $1300 per ounce.
Looking ahead, GCY’s FY22 production guidance has been set at between 70,000 ounces and 80,000 ounces, which the company states is consistent with July 2020’s life-of-mine projections.
Gascoyne’s FY22 AISC is expected to tip up to $1700 per ounce, while its FY23 and FY24 production guidance has been set at between 70,000 and 80,000 ounces.
In terms of finances though, the miner has warned of a non-cash impairment expense of between $65 million and $90 million for FY21.
GCY explains the expense is due to the lowering gold price assumption in its impairment model, an accounting policy for the capitalisation of deferred waste, and an increase in overall mining costs.
Company CEO Richard Hay said the business was also investing more into exploration.
“Following a period of under-investment in exploration, we recently re-invigorated our exploration program centered on Dalgaranga with the aim of growing our mineral inventory and annual production rate via the systematic testing of high priority targets within 15 kilometres of the plant,” he added.
Shares in Gascoyne Resource have dropped over 15 per cent in early trade on the back of today’s news.
Company shares were trading down 14.9 per cent at 46.5 cents each at 12:08 pm AEST.