Shares of Mandalay Resources took a hit on Thursday morning as the company adjusted its guidance for the year following a challenging second quarter.
At 10:06 a.m. ET, shares were trading 6.5% lower at 1.87 Canadian dollars ($1.42).
Revised Production Guidance
The Canadian natural resource company, which operates in Australia and Sweden, has revised its 2023 production guidance. The new range is set between 88,000 to 100,000 gold equivalent ounces, down from the previous range of 105,000 to 118,000 ounces.
Factors Impacting Targets
Mandalay Resources downgraded its targets due to a number of factors. The second quarter was marked by supply-chain issues, personnel vacancies, and lower mine volumes.
During the second quarter, the company produced 17,693 ounces of gold and 517 metric tons of antimony. Together, this amounted to a total of 20,850 ounces of gold equivalent.
Comparatively, in the second quarter of last year, the company produced 19,395 ounces of gold and 523 tons of antimony, resulting in a total of 23,305 ounces of gold equivalent.
Mandalay Resources’ adjustment to its guidance reflects the challenges faced in the second quarter. The company remains focused on addressing supply-chain issues, filling personnel vacancies, and improving mine volumes.