Norseman Gold announces cost saving shut down
Struggling Australian mining company Norseman Gold is to suspend work at its "OK Decline" site as a cost saving measure.
Struggling Australian mining company Norseman Gold is to suspend work at its "OK Decline" site as a cost saving measure.
The move has seen the shares fall 2.61% this morning. Since January the stock is down 93%.
Norseman bought the "Norseman Gold Project" in Western Australia in 2007.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Today's announcement of a wide ranging review of operations also reveals the firm has reached harder rock ore at North Royal which, it claims, should increase the amount of usable ore.
The review is also considering how profitability at Bullen and Harlequin underground mines can be improved.
Norseman's new Chairman, David Steinepreis, says of the developments: "The cost of production per ounce has been the main issue at Norsemen due to the low number of ounces being produced... While the decision to suspend mining at the OK Decline is regrettable, I believe this will have an immediate positive effect on the Company's profitability."
BS
-
FTSE 100 hits record highs – why is it rising and will we see more gains?
Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
By Marc Shoffman Published
-
How to invest in copper
It may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
By Dominic Frisby Published