DCN reported June Q production of 31.9koz, which was a miss on prior guidance of 33- 36koz, largely due to slower than expected open-pit mining rates. AISC for the quarter are expected to be at the upper end of the guided range of between $1,550-$1,650/oz. Full-year production for FY2020 will come in at the lower end of guidance, and FY2021 production has also been downgraded, and due to lower production, AISC guidance has been revised upwards. Refinancing of the project loan facility is advancing towards a 1HFY2021 targeted completion. Debt repayments of $25m are expected during the September quarter, reducing the total to $39.1m. The hedge book has been reduced to ~84.6koz at a gold price of $2,055/oz at 30 June 2020, equating to ~25% of the Company’s three-year outlook. Following review of Argonaut’s research list, we will be ceasing coverage immediately after the release of this note.
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