Patagonia Gold shares plummet as it shuts mines

Argentinian precious metals miner Patagonia Gold has announced the closure of its Lomada de Leiva mine and the idling of the Cap Oeste operation, owing to lower-than-expected production volumes from both operations.

The Aim-listed company said on Tuesday that the Lomada de Leiva, which was reopened in November, would be closed at the end of February. The company had planned to recover 10 000 oz of gold over a 12-month period from Lomada de Leiva, but the mine had failed to deliver to expectations and was not covering operating costs.