Australia's Galena Mining faces worst day ever on production guidance cut, discounted placement

Galena Mining

20/04/2023 04:00

** Shares of Galena Mining Ltd  G1A.AX  slump as much as 37%
to A$0.145 - set for worst day ever, if current losses hold 
    ** Miner says weather and technical impacts at Abra mine
delayed a ramp-up to steady-state production
    ** Says lead production from Abra mine in 2023 expected to
fall to 50-60 kilo tonnes (kt) from earlier forecast of 53-68 kt
    ** Sees increase in production unit costs at Abra because of
lower-than-expected lead production and a 12% rise in overall
costs since the last guidance provided in July 2022
    ** Says co has accepted binding commitments to raise A$20
mln ($13.40 mln) before costs to provide additional working
capital funding for the Abra ramp-up
    ** Issue price of A$0.15 per share represents a 34.8%
discount to last close on April 6
    ** Shares hit their lowest since Sept 30, 2022
    ** Stock down 8% YTD, as of last close
    
($1 = 1.4923 Australian dollars)

 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))