Dacian Gold has lowered its production guidance for FY21. Image by Kim Christian/AAP PHOTOS

mining

Dacian Gold lowers FY21 guidance

2020-07-13 13:41:22

Dacian Gold shares have slid after the company said its gold production next fiscal year would be below previous forecasts as it plans to cease activities at one of its mines in August, four months before previously planned.

Dacian Gold said on Monday it expects to produce between 110,000 to 120,000 ounces of gold from its mine near Laverton, WA, in FY2021, down from the 120,000 to 130,000 ounces previously forecast.

The gold miner produced 138,814 ounces in FY2020, at the lower end of its full-year guidance.

Dacian said stopping open-pit mining in August while there is 195,000 ounces of gold still left in the Westralia mining area would allow it to develop a holistic underground strategy for the four projects it has in the area.

At 1319 AEST, Dacian Gold shares were down 20.3 per cent to 31.5 cents.