Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Excellon Resources (TSX:EXN) fell 8% on Monday, after announcing it could run out of stockpiled ore at its Zacatecas-state mill “within the next few days” after a dispute with workers and local landowners halted operations at its La Platosa silver mine in Mexico.
By midday the Toronto-based miner was trading down 8.5% at $0.54 on the Toronto big board, near its lows for the day. The mining sector was generally soft on the day with the TSX S&P Global Mining index down 0.8%.
The $150 million company – down around 20% since the labour action began last week – said on Monday has filed criminal charges for damages against all groups who are participating in the illegal action: “The company has the full support of the State and Federal Governments on this issue and continues to work with the Government to assist in ending this action as soon as possible, so that the workers of La Platosa can return to the mine and resume their livelihoods.”
Excellon said the striking union assisted by a local NGO at the mine have refused to meet with local government representatives.
Final results of voting on whether the current union which is affiliated with the United Steelworkers Union of Canada would continue to represent the La Platosa miners could take several weeks according to Mexican labour law the company said in a statement.
