The company said Monday after market close it expected to produce between 325,000oz and 350,000oz of gold at all-in sustaining cost (AISC) of between $940/oz and $975/oz.

Leagold produced 64,517oz at AISC of $950/oz in the June quarter, which comprised a full-quarter contribution from the flagship Los Filos mine, in Mexico, and 38 days of operations from the newly acquired Riacho do Machados (RDM), Fazenda Brasileiro and Pilar de Goias mines, in Brazil.

At 43,541oz, Los Filos produced 15% fewer ounces compared with the first quarter, as fewer volumes of contained gold were placed on the heap leach pads in the first quarter and the impact of the leaching recovery lag time, coupled to lower-than-expected underground grades.

Los Filos also had a new agglomerator commissioned, allowing the company to segregate the processing of high-grade material. The processing plan now scheduled a significant increase in the uncrushed, unagglomerated material placed on the pads, which would improve gold production and cash flow in the second half of 2018, CEO Neil Woodyer commented.

"On a consolidated basis, we expect to be producing at an annualised rate of approximately 450,000oz in the second half of this year, at AISC of approximately $950/oz," he said.

Leagold was reorientating each mine in its Brazil portfolio into what it called "individual profit centres", though it noted it would take time to deliver results.

"Our newly acquired Santa Luz project, in Brazil, is a key growth opportunity; however, the first priority is assuming control of and optimising the three newly acquired operating mines. As a result, we are not expecting to restart construction of Santa Luz until later this year or early next year," Woodyer said.

The company, with a market capitalisation of C$540.2 million, saw its equity slump 16% to a new 12-month low of C$1.87 a share, having given away 35% year to date. The selloff dovetailed into a red day for Toronto markets following with metals and mining leading a broad selloff and falling 4.99%, while gold tumbled through a new 18-month low to US$1,172.50/oz.