Avesoro Resources Inc. (DI) (ASO)

Sector:

Mining

Index:

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 85.00p
   
  • Change Today:
      0.000p
  • 52 Week High: 201.50
  • 52 Week Low: 31.50
  • Currency: UK Pounds
  • Shares Issued: 81.58m
  • Volume: 1,029,487
  • Market Cap: £69.34m
  • RiskGrade: 764
  • Beta: 0.01

Aureus Mining suspends processing after cyanide leak

By Oliver Haill

Date: Tuesday 10 May 2016

LONDON (ShareCast) - (ShareCast News) - Aureus Mining has suspended processing activity at its New Liberty gold mine in Liberia after a cyanide spillage.
Shares in the company slumped 44% to 3.63p in early trade on Tuesday after the AIM- and Toronto-listed outfit said heavy rainfall had combined with problems with the detoxification circuit in the process plant, leading to a dangerous spillage.

Aureus, which has continued mining activities at the site to build up ore stockpiles, was hopeful that operations can recommence "in the near future", though approval will be first be required from Liberia's Environmental Protection Agency (EPA) and the local mines ministry.

Aureus said the detoxification circuit at New Liberty facility had not been operating to its original design specifications, which has resulted in higher concentrations of cyanide WAD (weak acid dissociated cyanide) in the process effluent, though this had not led the company to cease operations.

Some recent heavy rainfall "inadvertently" then resulted in a "small overflow" of effluent from the tailings facility onto the wetlands area within the mining lease area.

Aureus said there appeared to be "no adverse impact" on any human settlement as the discharge took place within the mining lease and some five kilometres from the nearest settlement.

Remediation work was said to have begun to fix the detoxification circuit, with the EPA is "in the process" of reviewing and approving this remediation work and to manage future water discharge from the tailings storage facility.

During this temporary suspension of processing operations, the company is taking the opportunity to carry out the planned mill reline and other preventative engineering maintenance and repairs, as well as modifications to the detox circuit proposed by external consultants.

"Oh dear," said analyst Yuen Low at broker Shore Capital, noting this rather spoiled news earlier this month that Aureus's lenders approved a further deferral of the first debt repayment to 31 May after the company completed work on its updated life-of-mine (LOM) plan.

"The spillage there has occurred at a particularly inopportune time, potentially throwing a spanner into negotiations works.

"We therefore suspend our 'buy' recommendation pending greater clarity on operational restart, punitive measures that might be imposed by the Liberian government, the impact on debt repayment negotiations and Aureus's financial position."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

ASO Market Data

Currency UK Pounds
Share Price 85.00p
Change Today 0.000p
% Change 0.00 %
52 Week High 201.50
52 Week Low 31.50
Volume 1,029,487
Shares Issued 81.58m
Market Cap £69.34m
Beta 0.01
RiskGrade 764

ASO Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
Market averageMarket averageMarket averageMarket averageMarket average
56.3% below the sector average56.3% below the sector average56.3% below the sector average56.3% below the sector average56.3% below the sector average
Price Trend
2.94% below the market average2.94% below the market average2.94% below the market average2.94% below the market average2.94% below the market average
66.93% below the sector average66.93% below the sector average66.93% below the sector average66.93% below the sector average66.93% below the sector average
Income Not Available
Growth
Market averageMarket averageMarket averageMarket averageMarket average
45.16% above the sector average45.16% above the sector average45.16% above the sector average45.16% above the sector average45.16% above the sector average

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 1
Sell 0
Strong Sell 1
Total 3
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

ASO Dividends

No dividends found

Trades for 23-Aug-2019

Time Volume / Share Price
11:35 31 @ 83.70p
11:08 1,026,172 @ 85.00p
10:12 600 @ 83.70p
09:29 1,600 @ 83.70p
08:42 1,084 @ 83.60p

ASO Key Personnel

CEO Serhan Umurhan
CFO Geoff Eyre

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