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.
Pan American Silver (NASDAQ: PAAS, TSX: PAAS) announced on Monday it is moving its Huaron and Morococha operations in Peru into care and maintenance in response to several workers at the mines recently testing positive for covid-19.
According to the company, a reduced workforce will conduct activities until it is determined that normal operations can safely resume.
Mining companies operating in Peru are being forced to keep operations suspended and halt new ones as confirmed coronavirus cases in the country surged past 353,000 on Sunday.
Pan American withdrew its 2020 operating guidance in March
The Huaron mine in Pasco produced 3.8 million ounces of silver in 2019, while the Morococha mine produced 2.5 million ounces.
The world’s second largest primary silver producer had suspended normal operations at its mines in Mexico, Peru, Argentina and Bolivia in March to comply with mandatory national quarantines imposed in response to the pandemic.
The Timmins West and Bell Creek mines in Canada have continued to operate at 90% of capacity.
Pan American withdrew its 2020 operating guidance in March, given the uncertainties related to the pandemic.
Midday Monday, Pan American’s stock was up 3.3% on the TSX. The company has a C$10.1 billion market capitalization.
