Calibre Mining (TSX: CXB; US-OTC: CXBMF) shares fell after the company cut its gold production forecast by over 18% and raised the cost estimate of the Valentine project in Newfoundland by 14%.
The Americas-focused mid-tier gold miner cut its full-year production forecast to 235,000 oz. at the midpoint, according to operating results for the three months to Sept. 30 issued on Friday.
A pit wall slide in May at Calibre’s Limon Norte mine in Nicaragua hurt production, CEO Darren Hall told a conference call after the results. As well, the company found previous artisanal miners had scooped out more than thought. In Nevada, where production is centred on the Pan mine, output also underperformed expectations.
“This setback is on us—management dropped the ball by not following the plan,” Hall said about Limon Norte. “We’ve now corrected course.”
Calibre said the Valentine project’s capital budget climbed by $91 million to $744 million in part because contractors underestimated infrastructure material needs. For instance, cement contributed to about 30% of the cost increase. However, it said the project is on track to start output next year.
