Allied Nevada (TSX: ANV, Stock Forum) reported production issues at its Hycroft open pit, gold and silver mine located near Winnemucca, Nevada, when the company provided an update to its 2014 guidance included in its quarterly report for the period ended September 30, 2014.
According to the news release, the company encountered a considerable amount of acid leach material in its planned mining areas in late-October and November which slowed drilling and reduced available ore to mine.
As a result, the company was unable to meet its planned ounces to place upon the leach pad, however mining rates have now returned to normal levels.
Because of the acid leach material placed on the leach pad in late-October and November, the company reported a slower than anticipated solution breakthrough, which even though it has begun to see a release from the acid leach material, has set the company approximately one month behind expectations.
So the ounces that were anticipated in November and December, will not be available until the first quarter of 2015.
The company now expects 2014 full year metal sales to hit approximately 210,000 to 220,000 ounces of gold and 1.8 million to 1.9 million ounces of silver, which is lower than the previously announced guidance of 220,000 to 230,000 ounces of gold and 1.9 to 2.0 million ounces of silver.
Despite production setbacks, the company announced that it had been able to meet its regularly scheduled interest payment to senior note holders and its other financial obligations and commitments. However the company announced changes to its liquidity and capital resources stated in its Q3 and is continuing to evaluate all financing options and strategies that might improve its current liquidity and financial condition.
Allied Nevada was in the news recently when the Reno, Nevada-based company announced optimizing phase 1 of the Hycroft mill expansion nine days ago.
Shares slipped 8.57% on the news to $1.60 per share.
Currently there are 104.2m outstanding shares with a market cap of $166.8 million.