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  • Austral Gold (AGD) has reported a strong first-quarter performance, despite industry-wide disruptions caused by the COVID-19 pandemic
  • The company’s Chile-based mining complex produced 17,159 ounces of gold last quarter, in line with its guidance and up 34 per cent on 2019’s corresponding period
  • However, due to the pandemic, exploration at the company’s Casposo and Pingüino sites in Argentina has been halted since mid-March
  • In an effort to retain cash in the coming months, Austral Gold is cutting its capital spending and honing its exploration activities
  • Austral Gold shares have undergone no change today, trading for 15 cents each

Austral Gold (AGD) has reported a strong first-quarter performance, despite industry-wide disruptions caused by the COVID-19 pandemic

The company’s Chile-based mining complex produced 17,159 ounces of gold last quarter, in line with Austral’s guidance and up 34 per cent on 2019’s corresponding quarter.

This is surprising, given the industry-wide guidance disruptions caused by the ongoing COVID-19 pandemic. Yet the company’ flagship mining complex has continued to operate during the crisis, resulting in its strong performance.

However, Austral Gold has seen some disruptions result from the ongoing pandemic. Exploration at the company’s Casposo and Pingüino sites in Argentina has been halted since mid-March.

Despite the record quarter, Austral Gold’s Chief Executive Officer, Stabro Kasaneva is aware of the threat the pandemic could be to the company.

“We are closely monitoring the developments around COVID-19 and we have implemented several precautionary measures to protect the health of all our people which is our top priority,” Stabro said.

“The Company is also working on contingency plans in the event we have supply-chain disruptions to gold or silver deliveries or the receipt of essential equipment and materials to operate,” he continued.

Stabro went on to say that the company has reduced its capital spending and is honing its future exploration to focus on brownfields surrounding the operational mine. The company hopes this will help retain cash in the coming months.

Austral Gold’s continued operations are a rare case in the industry at the moment.

Mines all over the Americas have been heavily affected by sweeping isolation measures to stem the spread of COVID-19.

Unforeseen market instability has driven investors to classic safe havens, with gold chief among them. As a result, the gold price reached its highest point since 2013 in the last month.

This suggests Austral Gold producing well in a strong gold market, with limited operating competitors.

Austral Gold shares have undergone no change today, trading for 15 cents each at 12:05 pm AEST.

AGD by the numbers
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