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Calibre Mining takes 20% production hit from COVID-19 closures

Kitco News

Nicaraguan miner Calibre Mining (TSX:CXB) said Wednesday that it expects 2020 gold production of between 110,000 and 125,000 ounces at an all-in sustaining costs of between $1,070 and $1,100 an ounce.

 

CEO Russell Ball said that the 10-week COVID-19 suspension added just 4% to costs.

 

“The phased restart of operations continues as planned with enhanced safety and health protocols in place and we anticipate reaching steady-state production levels in July. With operations suspended for the majority of the second quarter, we now estimate 2020 gold production of between 110,000 and 125,000 ounces, or approximately 20% less than our original guidance,” said Ball.

 

Ball said the company is guiding to just a 4% increase in costs on a per ounce basis.

 

"[We] see increased benefits from our ‘hub-and-spoke’ operating philosophy and are now starting to see the bottom-line impact of our increased focus on operating efficiencies and supply chain management practices.”

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