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Calibre Mining cuts 2020 guidance

Processing facilities at the Limon gold mine in Nicaragua. Credit: B2Gold

Calibre Mining (TSX: CXB) has lowered its 2020 production guidance following a 10-week suspension of operations due to the covid-19 pandemic.

The Vancouver-based gold producer announced on Wednesday that it is now forecasting production of between 110,000 and 125,000 ounces from its mines in Nicaragua. Prior to the shutdown, Calibre had planned to produce 140,000 to 150,000 ounces this year.

The company has also revised its cost guidance to $880-$920/oz for total cash costs and $1,070-$1,100/oz for all-in sustaining costs (AISC).

The miner revised its cost guidance to $880-$920/oz for total cash costs and $1,070-$1,100/oz for all-in sustaining costs

After a phased restart of operations earlier this month, the company has resumed exploration drilling with an expanded 60,000-metre program, up from 47,000 metres. An unbudgeted 20,000-metre infill drilling program is also underway targeting a significant upgrade in resources for inclusion in the end-of-year mineral reserve and resource estimate.

“The phased restart of operations continues as planned with enhanced safety and health protocols in place and we anticipate reaching steady-state production levels in July,” Calibre CEO Russell Ball said.

“Despite the fixed-cost nature of the business and an additional $40/oz in all-in sustaining costs from the unbudgeted increase in exploration drilling, and the unbudgeted infill drilling program, we are only guiding to a 4% increase in costs on a per-ounce basis,” Ball added.

Shares of Calibre Mining fell 2.8% on the TSX by midday Wednesday. The company has a market capitalization of C$442.8 million.