Shares of Centamin PLC (LON: CEY) collapsed over 20% to hit the lowest levels since June after the company said it will slash production guidance for this year.
Centamin is forced to close an area of the Sukari gold mine after ground movements were recorded. The miner produced 120,000oz of gold at Sukari for the three months to 30 September.
According to initial projections, the output for this quarter will fall 70,000oz as a result.
“The use of the slope radar system has facilitated pro-active management of geotechnical risks and we have decided to defer production from this higher-grade area in order to protect our workforce and preserve the value of Sukari.
“As previously disclosed, we are undertaking a LOA [life of asset] review of Sukari. This is well advanced and any rehabilitation requirements and implications for long term geotechnical stability will be incorporated into this initiative,” Martin Horgan, chief executive, said in a statement.
Centamin share price fell to 158.8p, the lowest it traded since the mid-June. The stock price printed an-all time high in August.
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