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.
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
-
FCA car finance compensation: £700 each expected for 14 million driversEligible motorists could begin getting a payout from next year under the financial watchdog’s planned car finance compensation scheme
-
Reeves warned against property tax shake-up – 3 ways it could backfire on first-time buyersRachel Reeves reportedly has her eye on high-end property taxes in the upcoming Budget, but there are concerns a shake-up could unintentionally hamper those trying to get on the housing ladder
