Norseman flags loss on lower production

Norseman Gold has forecast a loss of between $5 million and $8 million after production from its North Royal gold project failed to reach anticipated levels.

The company said it had launched a comprehensive review of its mining operations after last year lodging an operating profit of $200,000.

"This review is likely to include a reduction in manpower," Norseman said in a statement.

The board and management have also made a number of other decisions which are intended to immediately minimise the costs incurred at the operation in the short term and preserve cash resources."

At close of trade today Norseman shares were up 6 per cent, trading at 53 cents.