Why is the Dacian Gold share price slumping?
The big news today was Dacian's latest production and activities numbers. Dacian reported March quarter production of 21,400 ounces of gold at an all-in sustaining cost (AISC) of $1,874 per ounce. Those numbers came from the Mt Morgans Gold Operation (MMGO) output with year to date production of 81,361 ounces.
Managing Director Leigh Junk said, "While we were anticipating that production for the March quarter would be our lowest for the financial year, the result was below expectations". The disappointing result came as material movement productivities were below expectations due to operator shortages amid a tighter Western Australian labour market.
The Dacian Gold share price has tumbled lower on the back of this morning's disappointing quarterly update. That's despite Dacian maintaining FY2021 guidance of 110,000 to 120,000 ounces at an AISC of $1,400 to $1,550 per ounce.
The Aussie miner reported cash and gold on hand of $28.3 million at the quarter end having repaid $2.0 million of debt during the quarter.
Dacian completed more than 30,000 metres of exploration and resource definition drilling during the quarter. Mineral Resource estimation is underway across its Jupiter, Westralia, Mt Marven and Redcliffe mining areas.
Dacian also said Ore Reserve estimation activities are underway ahead of an updated Life-Of-Mine plan due in the September quarter.
Investors have smashed the Dacian Gold share price on the back of this morning's quarterly miss. Shares in the gold miner slumped more than 5% at the open in a tough week for ASX gold shares.
The St Barbara Ltd (ASX: SBM) share price was smashed on Wednesday after a disappointing quarterly result for the major Aussie producer.