LONDON (Alliance News) - Aureus Mining Inc said on Friday "unexpected challenges" had led to it missing targets for gold production for 2015, with work being carried out on the process plant in the next few weeks.
The West African gold producer said it produced 17,172 ounces of gold in 2015 against a target of 27,000, with production since mid-December hampered by issues experienced during the final phases of plant commissioning.
The company said it had suffered from worse-than-expected performance from the gravity circuit of the plant, causing overall gold recoveries of approximately 70% throughout December 2015 and early January 2016. It said it was implementing initiatives to address this over the coming weeks.
"The commissioning phase of New Liberty has brought some unexpected challenges, however, the recent progress being made and improved performance of the process plant are encouraging," said President and Chief Executive Officer David Reading.
Aureus Mining said it would be looking to defer its first debt payment, which is scheduled for January 31, and would be working with FirstRand Bank Ltd, Nedbank Ltd and the Export Credit Insurance Corp of South Africa Ltd to establish a new debt repayment schedule. The company said it does not have enough cash to pay both the first debt repayment and continue to make payments to suppliers as they fall due.
"We look forward to receiving the final approvals from Nedbank, RMB and the ECIC and would like to thank them for their continuing support and we look forward to agreeing a new repayment schedule in due course," Reading said.
Shares in Aureus Mining were down 24% to 4.10 pence on Friday afternoon.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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