Ascot estimates that three to six months of additional development will be required before it can resume operations. The company seeks funding to complete this work and has entered discussions with secured creditors. At the end of August, Ascot had about $15 million in cash, enough to cover costs during the winter suspension and maintain environmental compliance programs, it said.
“Despite strong mill performance, the delay in mine development poses a significant challenge,” BMO Capital Markets mining analyst Brian Quast told clients in a note Friday. Even so, the company’s progress on the mine’s commissioning process means it maintains an ‘outperform’ rating and a $1.25 target price, Quast said.
Ascot shares opened Friday at C27¢ apiece, about 39% below Thursday’s closing price Thursday of C44¢ and quickly dropped to a more-than-five-year low of C14¢ before climbing to C18¢ by midafternoon. It has a market…
