Allied Nevada halts all mining operations with no plans to reopen

By Kali Hays

New York, July 10 – Allied Nevada Gold Corp. has suspended all of its mining operations in order to “maximize cash flow and minimize spending” during its bankruptcy case, according to a news release filed with the Securities and Exchange Commission.

The company will continue to process and produce gold through continued operation of its heap leach pads at some processing plants.

Allied’s recoverable gold inventory stood at 260,000 ounces as of June 30, enough to maintain metal production for the next 12 to 18 months, according to the release.

In addition to continued gold processing, the company intends to complete construction of a sulfide ore processing plant with operations set to begin in September.

Randy Buffington, Allied’s president and chief executive officer, said that the mine shutdown “is critical to getting the company through the bankruptcy process” and blamed “the current metal price environment, cost pressures and workforce challenges” for the company’s failure to meet its operating goals.

The company does not have plans to restart mine operations at this time, according to the release.

Negotiations with its main creditor constituencies regarding changes to a reorganization plan filed in April are ongoing.

As previously reported, the company asked the U.S. Bankruptcy Court for the District of Delaware to extend its plan filing period through Nov. 5 from July 8.

A hearing to consider the extension is set for July 14.

Allied Nevada is a Reno, Nev., gold and silver miner that filed for bankruptcy on March 10. Its Chapter 11 case number is 15-10503.

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