The never-say-die Allied Nevada Gold Corp (NYSEMKT:ANV)
In its Q2 earnings report, The Reno-based Allied Nevada Gold Corp (NYSEMKT:ANV) announced that it is postponing its Hycroft mine construction in Humboldt County. Expansion of the processing plant has been delayed indefinitely due to sharp drop in Gold and Silver prices. In addition, some problems have cropped-up in the leach-pad process as well.
Work-force laid off
Metal is extracted from the ore via this process. The company official have said that it will complete its revised feasibility-study but has said that it cannot decide the scope, time frame or even the cost of this delayed project. The ANV President and CEO, Randy Buffington said that the company feels it is best to defer the mill build till the point of time a concrete plan is made. At this point of time the postponement seems to be the most prudent decision. In the Q2, the company also laid-off around 24% of its workforce.
Buffington said that the work force is the backbone of the company’s business. However, the lay-off’s will help the ANV operate in a more efficient manner. This is crucial in allowing the company the space it needs to adjust its cost-structure. The resources can then be used to boost profitability and growth. In the Q2, the mine produced 132,841 ounces of silver and 39,195 ounces of gold. The company’s net income dipped to $4.2M in comparison with the 46.1M that it stood at in the same quarter in 2012.
Latest trading session
In Wednesday’s trading session, Allied Nevada Gold Corp (NYSEMKT:ANV) rose 10.91%. The opening price of the shares was $3.99 which headed up to an intraday high of $4.51 and closed at $3.96. More than 6.88 million shares were traded in the trading session while the average number of shares traded over a 30 day period was 4.35 million. The company has a market cap of 454.22 million.