Subscribe
Be the first with the news that moves the market- Endeavour Silver Corp (TSX:EDR) is suspending its three Mexico-based mining operations until April 30, after the government implemented new lockdown restrictions
- As a result of the suspension’s effects on production, Endeavour has withdrawn its 2020 guidance until further notice
- The Mexican Government implemented the lockdown after confirmed cases of COVID-19 in the country passed 1,000 earlier this week
- Essential personnel will remain onsite during the lockdown for safety, security and maintenance reasons
- Endeavour Silver Corp (EDR) is up 4.55 per cent, with shares trading for C$1.84 and a market cap of $258.58 million
Endeavour Silver Corp (TSX:EDR) is suspending its operations in Mexico, while a new government mandated lockdown is in effect.
The government has called for all non-essential services to cease operations until April 30 to help stem the spread of COVID-19 throughout the country.
Confirmed cases of the virus in Mexico passed a 1,000 this week. As a result, the country declared a state of emergency.
Consequently, Endeavour will be forced to cease production at its three underground silver and gold mines.
This will likely decrease this quarter’s expected production. Therefore, the company has chosen to withdraw its 2020 guidance.
Endeavour Silver The company also pointed out that the lockdown may extend past its current duration.
If this is the case, production could be halted for an undeterminable amount of time. For this reason, the company has not announced when a new guidance will be provided.
Essential personnel will remain onsite during the lockdown for safety, security and maintenance reasons.
Bradford Cooke, CEO of Endeavour, believes this is the right move, given the risks posed by COVID-19.
“Suspending our mining operations on a temporary basis is the best way to ensure the health of our work force during this COVID-19 crisis.
We are also working with the local communities to protect the health of the local people, inform them of the precautions needed to stay healthy, and provide medical supplies, masks, cleaners and disinfectants as needed,” he said.
Endeavour Silver Corp (EDR) is up 4.55 per cent, with shares trading for C$1.84 at 10:01am EST.
