Guyana Goldfields Inc. did not do as well as it anticipated for 2019. According to the company’s latest financial disclosures, its production for 2019 totaled 124,200 ounces, down 17% from 150,400 ounces a year earlier. Even its fourth quarter performance for 2019 was underwhelming. The Guyana Standard understands that gold production at the Company’s Aurora Mine totaled 28,300 ounces in the fourth quarter of 2019, up 28% from 22,100 ounces in the third quarter of 2019 but down 28% from 39,100 ounces in the fourth quarter of 2018.
With respect to financing and strategic alternatives, it was noted that the Company previously anticipated generating sufficient working capital and cash flow to cover operating requirements through 2020, but it is now clear that this objective is no longer achievable. It noted therefore that there will be a need for additional financing for the cost of additional waste stripping for the open pit and the development of the underground mine.
The Guyana Standard understands that management is actively exploring financing alternatives to provide additional balance sheet flexibility. While the evaluation of financing alternatives continues, the Company is concurrently conducting a review of strategic alternatives and has engaged RBC Capital Markets as its advisor for the review of strategic and financing alternatives.
Alan Pangbourne, who became President and CEO on January 1, 2020, stated that gold output has been, and will continue to be, affected by an inability to achieve the aggressive waste stripping rates originally proposed in early 2019. Pangbourne said that this led to development of small, congested mining areas.
He said, “We continue to move toward the transition to underground mining, but we will need additional financing to cover a shortfall in cash flow from open pit gold production.”
