AUS
NZ
UK
CA
USA
IND
Hillgrove Resourcesâ stock is falling steeply on Australian Securities Exchange. At the time of writing the stock has crashed 12.644% to stand at $0.076 on 21 December 2018. The investors have been so bearish that the stock has moved to set a new low, breaking its current low of $0.075.
But why bears are taking charge?
The sell-off comes after the miner revealed the occurrence of rock fall at its Kanmantoo Copper Mine on 19 December 2018.
In todayâs market release, Hillgrove Resources Limited (ASX:HGO) stated that a rockfall occurred in the Kanmantooâs giant open pit which led to the temporary suspension in mining operations.
The company explained that no one got injured in the incident and mining in the open pit has since recommenced. Moreover, the processing operations have reportedly been continued throughout the mining work suspension, including the treatment of ore from the stockpiles built during the year.
Further, Hillgrove told that the area affected by the rockfall had been restricted for geotechnical assessment to assess the possible impact of rock fall on its future copper production
However, the companyâs 2018 annual production guidance remains unchanged. As per the quarterly report released on 30 September 2018, the company has reassured its copper production guidance to 22,000 - 24,000 tonnes.
For the Q3 ended 30 September 2018, the company posted the highest quarterly production of copper on record that outlines 6,454 tonnes of copper production. The management explained that the strong fixed pricing contracts had supported the record quarterly production.
On the front of gold production, Hillgrove reported 1306 ounces of gold production with total 5,118 ounces produced for the first three quarters of 2018. Subsequently, the company has increased its 2018 gold production guidance from initial 2,500 â 3,500 ounces to current 5,500 â 6,000 ounces. Its C1 costs estimates stand at US$2.00 to US$2.25 (at 0.78 exchange rate) for the year ended 31 December 2018. Exploration capex and capital projects for the entire 2018 have been anticipated to $1.8 - $2.5 million and $2.6 - $3.0 million, respectively.
Hillgrove stock is currently trading through its lowest levels with PE of 2.00 x and a market capitalization of $50.24 million as at 21 December 2018 (1:26 PM AEST). However, the stock price has increased by 8.75% over the past 12 months and 4.82% in the recent 5-day trade.
Disclaimer
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
