Shares in Irish-based Glencar Mining took a tumble this morning, dropping back sharply in reaction to yesterday's disappointing news regarding a key gold mine in Ghana, dealers said.
After the market close last night, Glencar warned that production figures for its Wassa mine in Ghana have been below expectations for the first two months of the current year.
The company added that, as a result, and owing to the current gold market environment, it is unlikely that it will be able to recover any of its investment in the project.
Glencar said the number of ounces of gold produced for in January and February 2001 was 7,600 and 5,700 respectively. It added that these levels of production were caused by technical difficulties at site, primarily with the leaching process.
In reaction to the news, Glencar Mining lost almost 40 per cent of its value on the London Stock Exchange. It was trading at £3.50 sterling, down £2.25 at lunchtime.
AFP