06/09/2016 - 15:26

Doray down on 2017 guidance

06/09/2016 - 15:26

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Shares in Doray Minerals were down 5.5 per cent as the gold miner released production guidance for the 2017 financial year of between 105,000 and 120,000 ounces.

Doray down on 2017 guidance
Gold miners have had a decent run as the price of the commodity has jumped this year.

Shares in Doray Minerals were down 5.5 per cent as the gold miner released production guidance for the 2017 financial year of between 105,000 and 120,000 ounces.

Andy Well production will be between 65,000 and 70,000oz, while Doray predicts production between 40,000 and 50,000oz at its Deflector mine.

All-in sustaining cash costs at Andy Well were estimated to be up to $1,400/oz.

The company was tight-lipped on cost guidance for the Deflector facility, however, with numbers to be released when production reaches steady state levels.

Doray managing director Allan Kelly said production of gold and copper concentrate was ramping up, with some processing changes improving recovery.  

“The focus at the moment is on maximising the amount of gold being recovered from the gravity circuit, in preference to that from the flotation circuit, whilst optimising the overall copper recoveries,” he said.

“When we started production at Andy Well back in mid‐2013, we had an inventory of about 256,000 ounces, which included approximately 30,000 ounces from the two high‐grade open pits, and forecast production of approximately 74,000 ounces per annum.

“Over the past three years, we have consistently averaged around 17,500 ounces per quarter from underground, which equates to about 70,000 ounces per year excluding the open pits.

“We are therefore forecasting similar production from underground this year and we will also be working towards a potential development decision on the Gnaweeda prospect, which could have a significant positive impact on the production profile at Andy Well beyond the next 12 months.”

It comes after the company filed an earnings report at the end of August with an earnings before interest, tax, depreciation and amortisation of $62.7 million on a margin of 48 per cent.

Production was slightly lower than in the year to June 2015, however.

Doray shares were 5.5 per cent lower at 71 cents each at the close of trading.

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