After continued struggles at the Beaufor Mine, Monarch Mining (TSX: GBAR) is placing the mine into care and maintenance. The mine has been plagued with both financial and operational challenges, which were first highlighted by the company several weeks ago.
Cash restrictions as a result of mechanical and procurement issues, as well as poor grade reconciliation with material stockpiled is ultimately what brought the operation to a halt. There is currently discrepancies between the grade of the material being pulled out of the ground, and what grades are ultimately reported at the mill once processed. This poor conversion has placed the firm in a position of poor cash flow.
The Beacon Mill, which has been processing material from the Beaufor Mine, is also expected to be placed into care and maintenance once the ore stockpiled has been processed. The mill is currently capable of 750tpd, while there is 20,000 tonnes reportedly stockpiled.
A strategic review of assets and operations is being undertaken as a result of the mine closure, while the company concurrently will review the highlighted issues to find a solution to its dilution problem.
‘’We will continue to work towards resolving the present situation at the operations while seeking strategic and financial alternatives to maximize stakeholder value,” commented CEO Jean-Marc Lacoste.
The company last reported a cash position of $6.1 million, as of March 31.
Monarch Mining last traded at $0.12 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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