Latest update January 1st, 2025 1:00 AM
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Guyana Goldfields exploring sale
Canada-owned Guyana Goldfields Inc., which controls the biggest gold mining operations in Guyana, is contemplating a possible sale.
Canadian-owned Guyana Goldfields Inc. is reportedly examining its options for selling the operations.
While local officials of the AGM Inc., the local company, which operates the gold mine at Aurora, Cuyuni, in Region Seven did not confirm yesterday, online business news, Bloomberg, reported that the Toronto-based company is working with advisers at Royal Bank of Canada and Maxit Capital, an independent financial adviser to mining companies.
While sources said that the matter is private, it was disclosed that the deliberations are in early stages and may not result in a sale of the business.
The gold mining company has faced pressure from investors after a sell-down in the stock saw the company lost more than $1B in value since June 2016.
Investors, led by former chief executive officer Patrick Sheridan, said publicly at the beginning of the year that they were seeking an overhaul of the board, amid falling production and higher costs.
In April, Guyana Goldfields reached a settlement with a group of dissident shareholders after a proxy fight and agreed to revamp the board and change the CEO.
Guyana Goldfields slumped by almost half in late October after the company lowered its production guidance and raised costs for a second time last year.
The first time it delivered similar bad news in 2018 was in mid-July, when its market value plummeted by more than a fifth.
The company’s shares were down 5.7% at 10:35 a.m, Tuesday, in Toronto, giving it a market value of about C$231 million ($175 million).
That’s down from about C$1.6 billion in mid 2016.
AGM in addition to its main operations at Aurora has annexes at Buck Hall on the Essequibo River and at Liliendaal, Georgetown.
AGM has more than 600 workers and have been producing about 150,000 ounces on average since starting commercial operations in early 2016.
It is a largest private producer for an industry that has been the biggest foreign currency earner for Guyana.
It is moving to build an underground mine.
It is targeting up to 160,000 ounces to be produced this year with 38,300 declared for the second quarter.
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