Silver Lake axes gold sales guidance on virus

Credit: Silver Lake Resources Ltd.

Western Australian gold miner Silver Lake Resources Ltd. withdrew its sales guidance for the year through June due to “severe” disruptions to its operations caused by virus-related labor shortages.

The mineral-rich state’s resources industry — which relies on flying workers in and out of remote sites — has been hit by labor shortages during the pandemic after its pursuit of Covid Zero meant implementing strict border measures, including enforced quarantines. After finally reopening its domestic and international borders in early March, Western Australian mining camps have become susceptible to coronavirus outbreaks, threatening some production.

Silver Lake said it’s unlikely to see an influx of international and interstate skilled workers in the foreseeable future as they may favor employment opportunities closer to home.

“Covid-19 related labor shortages in March and April has exacerbated the already tight labor market and supply chain constraints,” the Perth-based company said in it’s quarterly production report on Thursday. “Silver Lake is withdrawing FY22 sales guidance as it cannot predict 4Q operating performance with an acceptable level of confidence for stakeholders to rely on.”

Other Australian miners Fortescue Metals Group Ltd. and Newcrest Mining Ltd. also said on Thursday their operations were being affected by Covid-related disruptions.

However, Fortescue raised its full-year shipment guidance for iron ore and Newcrest increased its forecast gold production target for the same period.

(By Ranjeetha Pakiam)

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