Austral Gold Cuts Guanaco 2025 Output After Fatality, Sells Assets for Cash
Austral Gold has lowered its 2025 production forecast for the Guanaco Mine following a workplace fatality that halted key processing operations. The company has also sold equity holdings to bolster cash flow amid operational disruptions.
- 2025 Guanaco production guidance revised down to 11,000–12,000 GEOs
- Agitation leach circuit remains offline after August workplace fatality
- Heap leach circuit continues operation with production stabilizing by November
- US$1.3 million raised from partial sale of equity portfolio
- Final US$1 million installment received from prior property sale
Production Guidance Revision
Austral Gold Limited has announced a significant revision to its 2025 production guidance for the Guanaco Mine in Chile, lowering expected gold equivalent ounces (GEOs) to between 11,000 and 12,000. This marks a reduction from the previous forecast of 14,000 to 16,000 GEOs disclosed just a few months ago. The adjustment comes in the wake of a tragic workplace fatality on August 26, 2025, which has led to the temporary shutdown of the mine’s agitation leach circuit, a critical part of the processing facility.
Operational Impact and Recovery
While the agitation leach circuit remains offline, Guanaco continues to operate its heap leaching circuit and is actively reprocessing historical heaps. The tailings filter section has also been suspended pending improvements mandated by Chilean authorities following their inspection. Despite these challenges, the company expects production to stabilize by November 2025, with monthly output projected to exceed 1,200 GEOs. The timeline for fully resuming agitation leaching operations remains uncertain, leaving some questions about the mine’s near-term output potential.
Financial Maneuvers to Support Cash Flow
To mitigate the financial strain caused by reduced production, Austral Gold has sold a portion of its equity portfolio in publicly listed companies, generating approximately US$1.3 million in proceeds during September. This move underscores the company’s proactive approach to maintaining liquidity amid operational disruptions. Additionally, Austral received the final US$1 million installment from Unico Silver related to the 2023 sale of SCRN Properties Ltd., which owns the Pingüino property, providing a further boost to its cash position.
Strategic Outlook
Austral Gold’s portfolio strategy balances production, exploration, and equity investments across the Americas. The Guanaco Mine remains a key asset, but the recent incident and resulting operational setbacks highlight the risks inherent in mining operations. The company’s ability to navigate regulatory requirements and restore full processing capacity will be critical to meeting its growth ambitions. Investors will be watching closely for updates on safety improvements, regulatory approvals, and production ramp-up timelines.
Bottom Line?
Austral Gold’s next steps in restoring full Guanaco operations will be pivotal for its 2025 outlook and investor confidence.
Questions in the middle?
- When will the agitation leach circuit fully resume operations at Guanaco?
- What are the long-term safety and regulatory implications of the workplace fatality?
- How will reduced 2025 production affect Austral Gold’s broader growth strategy?