Here’s why Tietto Minerals (ASX:TIE) fell over 20% this morning
Nick Sundich, September 5, 2023
Tietto Minerals (ASX:TIE) released its monthly production update this morning and investors were not impressed.
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Tietto Minerals (ASX:TIE) downgrades guidance
The company, which operates the Abujar Gold Mine in the West African country of Cote d’Ivoire, released its update for the month of August. Although it produced 11,191 ounces in August, this was down from 11,643 in July. The company admitted it was behind schedule now given issues such as wet ground conditions and the absence of normal pre-stripping.
Furthermore, these issues were projected to continue into the second half a year and as a consequence, it adjusted its guidance to 75-87koz as well as its production schedule through to 2030.
Is the future still bright?
Tietto Minerals tried to mitigate the damage by reminding shareholders it would produce ~172,000oz on average over the next 7 years, had $43.8m in closing cash and bullion and projected US$50-60m in cash flow during the second half. But this was unsuccessful and shares fell by over 20%. Tietto Minerals has now more than halved since its all time high reached in December last year.
Clearly investors believe these issues will persist for some time and they could well be right.
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