Australian mining firm Norseman Gold (LON:NGL, ASX:NGL) today told investors that its non executive director Michael De Villiers has resigned from the company "due to personal and business circumstances".
De Villiers’ resignation was effective from Wednesday September 7.
Norseman operates one of the world’s oldest operating gold mines, the Norseman mine in Western Australia - where gold was first discovered at 1894. It is currently working to establish and ramp up production from four mines on the Norseman site, however it has come under pressure in recent months as output targets were missed.
Last week the group released its results for the second quarter of the current financial year. In the statement Norseman said that it expects to have all four of its mines at Norseman in Australia commercially producing ore for the treatment plant by the end of the second quarter of the 2012 financial year.
Once all four mines are producing commercially, gold production is forecast to be in a range between 100,000 and 110,000 ounces per year.
Earlier this week broker Seymour Pierce said that despite its recent problems Norseman's share price undervalues the company, even when viewed with a more conservative view of the mine's production potential.
The broker said that it had been expecting the need to downgrade its forecasts once the dust had settled on a turbulent 2011. Its 2012 and 2013 production expectations have now been lowered to match the company’s comments and it assumes 100,000 ounces and 105,000 ounces for 2012 and 2013.
“However, this still means a doubling of production this year. Norseman remains one of the lowest rated gold plays around, so successfully executing the new production plan should bring further improvements in the share price,” said Seymour Pierce.