Perseus Mining has crashed after forecasting a lower guidance range for gold production out of its flagship mine in the second half of the year because of maintenance issues.
The goldmining company plunged by 18.1% to 54.5 cents in the first few minutes of trade following its statement that production at its Edikan gold mine is now anticipated to be marginally below its previous guidance range of between 105,000 and 125,000 ounces.
"Minor plant maintenance issues combined to cause instability in the processing circuit resulting in lower daily gold production than forecast," the company said.
Perseus said its all-in cash cost for the half-year ending June 30 is likely to be more than US$1,100 per ounce because of the lower gold production.
The gold price has slumped by 7.8% to $1,282 an ounce in the past two weeks.
"The recent fall in the gold price combined with an in depth review of our cost structure has caused a reassessment of operating plans for Edikan Gold Mine going forward," Perseus said.
The gold miner will produce guidance for the next 18 months for the mine in the June quarter activities report and an updated mineral resource estimate.
However, Perseus said it is encouraged by operational improvements at the mine, with crushing and milling rates stabilising towards the upper end of its estimates.