GEORGETOWN: Guyana Goldfields achieved first gold production at its flagship Aurora gold project in Guyana, South America. The first gold pour executed on time and on budget. It expects the Aurora mine to start commercial gold production as early as next month. The Aurora mine could produce up to 50,000 ounces of gold by year-end, and 140,000 ounces in 2016. It will make good profits and cash flow at today’s gold price.
Gold prices plunged to 5-year lows in mid-July and that bearish momentum has carried into August. The sell-off could worsen if the U.S. central bank raises interest rates at its September policy meeting. Guyana Goldfields is ready for a sub-$1,000/oz gold environment. It plans to remodel the mine plan to suit lower gold prices, by expanding the mill in late 2016 and deferring underground production later into the mine life.
Guyana Goldfields expects to complete an updated Feasibility Study (FS) in the first quarter of 2016 to outline the changes in the mine plan. They currently have a $4.40 per share price target and BUY and HOLD rating on the company. Investors have upside catalysts to look forward to, such as the all-important transition into commercial production. Insiders continue to buy shares, as the company transitions from developer to gold producer.
