Great Panther drops 12% after announcing pit problems
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Previous guidance for the full year of 2019 was 171,500 – 185,000 total gold equivalent ounces. Revised guidance is 150,000 – 160,000 ounces.
The company's stock price dropped 12.4% to 78 cents a share as 2 p.m. ET.
The company said there has been deterioration to sections of the west wall of the Urucum pit, "...including failures along the lower southern portion of the west wall and cracks along the central section of the pit."
"As a precautionary measure and following safety protocols, the pit and access roads were closed, an adjacent haul road was re-routed and stockpiles moved away from the pit."
The company is conducting a geotechnical review. There have been no safety incidents nor stranded equipment.
"Based on this updated guidance we are still projecting to deliver growth in production relative to the third quarter of 2019. Our first priority is to take all necessary steps to ensure the safety of our employees and contractors at the Tucano Gold Mine while working diligently to minimize the impact to short-term and medium-term production," stated James Bannantine, President & CEO.
The Tucano Gold Mine is the second largest gold producer in Brazil.