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.
Argonaut Gold (TSX: AR) announced Wednesday it is halting mining activities in Mexico to comply with the government-mandated suspension all non-essential businesses until April 30.
Given that Argonaut operates heap leach mines, the company expects metal production and metal sales will continue during the temporary suspension of mining activities.
“We must continue to process pregnant solution coming from the heap leach pads for the safety of the environment. Therefore, we expect to continue metal production and sales.” company said.
To date, there are no known or suspected cases of covid-19 infection at any of the company’s operations, projects or corporate offices, the company said.
The Company’s expects its previously announced friendly, at-market merger with Alio Gold will continue.
“With both companies understanding the unique and unprecedented circumstances surrounding the covid-19 outbreak, in the Plan of Arrangement, each of Argonaut and Alio have the option to withdraw from the transaction if the other company’s mining operations are suspended for 45 days.”
Argonaut is withdrawing its full-year guidance across all operations.
During 2019, Argonault’s El Castillo Complex and La Colorada mine in Mexico produced 131,277 gold equivalent ounces (GEOs) and 55,338 GEOs, respectively.
