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Besra lowers output guidance in 2014

Besra lowers output guidance in 2014

Photo by Bloomberg

17th February 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Dual-listed Besra has downgraded its gold production expectations for the 2014 financial year, after missing its second-quarter production targets.

The ASX- and TSX-listed miner on Monday lowered its production guidance from the previous estimate of between 60 000 oz and 65 000 oz, to between 40 000 oz and 45 000 oz.

During the second quarter, Besra produced 7 550 oz of gold at a cash cost of $ 1 481/oz, which compared with the 16 204 oz of gold delivered in the previous corresponding period, at a price of $794/oz.

“Performance in Vietnam has primarily been affected by two significant events. The flow-on effects of import and export restrictions in the first quarter drove costs up and production down due to the availability of parts and supplies,” said Besra CEO John Seton.

He noted that this was compounded by several severe weather events in quick succession, which caused major disruption at Phuoc Son and complete suspension of operations at Bong Mieu from November 16, owing to the site becoming inaccessible after numerous road washouts.

“While our programme of cost reductions and improved efficiency at both operations in Vietnam has been continuing with some excellent results alongside significant corporate expense reduction, the next financial benefit of the programme was negated by these events,” Seton said.

As a result, Besra was faced with significant liquidity challenges, he added, and was actively pursuing a range of financing and refinancing options.

In the immediate future, Besra was looking to access debt or equity in an effort to return to profitable operations in Vietnam.

If fundraising efforts were not successful within the next four weeks, the company would seriously consider suspending operations, Seton said.

Edited by Creamer Media Reporter

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