Blackout at Hemlo gold mine to slow ramp-up
Blackout occurred at the mine’s Alimak zone and processing plant, with mining in other areas continuing without interruption
A power outage at Hemlo Mining's Hemlo gold mine in northern Ontario is delaying the company's planned increase in gold production. The mid-September blackout affected the Alimak zone, causing interruptions in underground work and the processing plant. TD Securities analyst Steven Green expects the incident to reduce near-term grades and slow the mine's ramp-up to 4,800 tonnes per day, as initially planned for the end of the year.
Scotia Capital analyst Ovais Habib now anticipates the company will produce about 59,600 ounces of gold in the second half, a 20% decrease. The stock of Hemlo Mining fell by 8.9% to $7.55 per share, valuing the company at around C$2.2 billion. The mine has been investing in mobile equipment and planning to reopen the open pit to increase production.
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