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Guyana to review options, including sale: Bloomberg
Posted on Tuesday, 13 August 2019 12:55
Guyana Goldfields, whose shares tumbled at the end of October 2018 following a downward revision of its 2018 gold production guidance, is said to be weighing options that include a potential sale.
Sources close to the situation told Bloomberg the Toronto-based intermediate precious metal miner has hired Royal Bank of Canada and Maxit Capital to advise on the review.
The people cautioned there is no certainty the evaluation would result in a sale and, when contacted by the news provider, the companies named either declined to comment or did not immediately respond.
Guyana is primarily focused on the exploration, development and operation of deposits in South America’s Guiana Shield, which is in the northern part of the Amazon Craton and covers parts of Guyana, Venezuela, Suriname, French Guyana and northern Brazil.
The company’s unaffected share price finished up 1.4 per cent at CAD 1.41 (USD 1.07) yesterday and a market capitalisation of CAD 244.68 million.
Investors have put pressure on the miner and at the beginning of January requested a special meeting of shareholders, which owned 5.4 per cent in aggregate as at 31st December 2018, to consider replacing the current board.
At the time, they said the company needs to improve business performance, repair the relationship with the government of Guyana and turn around the stock price.
They noted Guyana has lost over CAD 1.00 billion in its market value since 2016 because of the current board's operational failures, irresponsible actions and risky decisions.
In its report for the second quarter of 2019, the company said gold production for the first six months of 2019 totalled 74,000 ounces (H1 2018: 70,100), in line with the annual output guidance range of 145,000 to 160,000 ounces of gold.
Guyana is continuing its near mine exploration efforts and has an active drill campaign using two surface drill rigs to test down plunge extensions of the high-grade mineralisation reported in late 2018.
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