PERTH (miningweekly.com) – Embattled gold miner Beadell Resources missed its amended production target during 2018, from its Tucano gold operation, in Brazil.
The company in August last year amended the full year production guidance from the original target of 145 000 oz to 155 000 oz, to between 125 000 oz and 135 000 oz, following a delay in the upgrade to the Tucano plant.
Beadell MD and CEO Dr Nicole Adshead-Bell said on Wednesday that despite the company’s best efforts, gold production in the December quarter reached only 15 848 oz, bringing full year production to 123 336 oz.
During 2018, Beadell terminated its mining contract and appointed a new contractor, while the plant upgrade was completed in-house in November of last year.
Adshead-Bell noted that the reduced guidance resulted in the deferral of some $24-million to $36-million in revenues in 2018, increasing the company’s risks in the first half of 2019, and prompting Beadell to consider its financing options.
Beadell in September agreed to a friendly $105-million takeover offer from Great Panther Silver, offering 0.0619 common shares of Great Panther for each ordinary share of Beadell, implying a consideration of A$0.086 a Beadell share.
On the completion of the transaction, Beadell shareholders would hold some 38% of the combined company.
Beadell shareholders are expected to vote on the takeover offer on February 15, while Great Panther shareholders will meet on February 11.