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More production woes at Great Panther

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(Kitco News) – High rainfall and pit congestion forced Great Panther Mining (TSX:GPR) to announce Thursday another downward revision in guidance.

The company said its annual consolidated guidance is adjusted to 142,000 – 149,000 gold equivalent ounces, an approximate 6% decrease from the midpoint of the prior production guidance range of 150,000 to 160,000 gold equivalent ounces.

The company was down 10.77% to 58 cents a share as of 11 a.m. ET.

Last month the company revised guidance downward after reporting wall deterioration at its Urucum central south pit, part of its Tucano Gold Mine in Brazil.

But changing the mine plan has resulted in more complications.

“Following the geotechnical incident which suspended mining at Tucano’s Urucum Central South pit (“UCS”) on October 6th, production was accelerated from Urucum North and Urucum South pits,” writes the company. “Mining from these two pits has since encountered lower than expected productivities due to higher than normal rainfall, increased pit congestion due to more constrained mining geometries, and smaller blasts needed to separate ore and waste to reduce dilution.  These collective factors paired with ore variability resulted in lower than expected production.” 

The company has been rocked by events this fall. Two employees died at its mines in workplace accidents. The company also removed its CEO.