Investors Chronicle - the trader24 Oct 2022 15:42
Pure Gold calamity worsens
A company we highlighted a few years ago when it added a London listing to its TSX base, Pure Gold (PUR), has almost thrown in the towel after a year of production issues and geological confusion at its re-opened gold mine in Ontario. The company said on Monday morning it had been unable to either reach positive cash flow or raise new cash because of the weakness of its share price, and would stop operations at its underground mine immediately.
Trouble began last year when the content of gold in the ore being mined was lower than expected, and the former chief executive was rolled in January, while the company slashed mine manager roles and looked for other cash savings. Pure Gold was trading over 160p two years ago but fell to 60p 12 months ago and is now at 2p, falling 71 per cent on Monday morning. AH