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.
Equinox Gold (TSX: EQX, NYSE: EQX) reported on Monday that a union blockade at the company’s Los Filos mine in Mexico has been removed and the mine has resumed operations.
Members of the Xochipala community, however, remain camped near the Guadalupe and Bermejal open pits, disrupting mining activities in this area of the operation only, according to the company.
Los Filos representatives continue to engage with government and Xochipala representatives to achieve resolution.
Operations were suspended in June after the blockade by unionized employees and members of the Xochipala community demanded payments in excess of their contractual agreements.
The Canadian miner had already suspended activities at the operation in September after locals blocked access.
The company withdrew 2020 production and cost guidance for the mine, which had been expected to produce 90,000-110,000 ounces of the company’s 470,000-530,000 total guided ounces of gold for the year.
The Los Filos complex began commercial production in 2008. The operation consists of two large open pits (Los Filos and Bermejal) and one underground mine.
Midday Monday, Equinox’s stock was up 6% on the TSE. The company has a C$2.4 billion market capitalization.
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Walter Kotecki
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