DACIAN Gold (ASX: DCN) looks to be back on track after announcing it had delivered 42,000oz in its preliminary Q3 results.
Dacian has been clawing its way back from a vicious stock dump in June when it lost about three quarters of its value after the company was forced to lower its guidance twice in three months.
While June quarter production guidance lowered from 50,000oz-55,000oz to 36,000oz-38,000oz, it is now in line with the projected first half of FY2020 guidance of 150,000oz to 170,000oz.
The company paid back a scheduled $10.8m debt repayment, and increased its cash and gold on-hand position by $8.3m to $53.9m, leaving the outstanding bank debt at $94.7m.
Dacian said that the mill reconciliation for the quarter was up 100.7pc from 88.3pc in the June quarter, and that project-to-date mill reconciliation for all production at the Mount Morgans Gold Operation, since first gold in March 2018, now sits at 100.2pc.
Dacian Gold executive chair Rohan Williams said that Q3 saw pleasing results across all key performance metrics.
“The project-to-date mill reconciliation at 100.2pc also confirms the strong reconciliation performance being seen at Mt Morgans,” he said.
“The strong overall performance is also reflected by the fact that our cash equivalents on hand rose sharply to more than $50m, despite making a $10.8m debt repayment during the quarter.”
The strong quarterly results for the fledgling miner have come off the back of a high-grade mineralisation of over 300m strike length at the historic Morgans North open pit in August.
And on October 3, the company announced the maiden resource for the high-grade Phoenix Ridge discovery of 125,000oz at 8.1g/t.
