Subscribe
Be the first with the news that moves the market- IAMGOLD (IMG) has been forced to suspend the Westwood mine and mill in Quebec, after a seismic event disrupted operations at the site
- The event occurred after midday on Friday and triggered an evacuation of employees, which were all subsequently brought above ground safely
- Operations at the site will remain suspended, while the event is investigated and a business recovery plan is developed
- The company intends to shed more light on the suspension in its upcoming quarterly report, which is expected to drop later this week
- IAMGOLD (IMG) is down 1.63 per cent and is trading at C$4.80 per share
IAMGOLD (IMG) has been forced to suspend the Westwood mine and mill in Quebec, after a seismic event disrupted operations at the site.
The event occurred after midday on Friday and triggered an evacuation of employees, which were all subsequently brought above ground safely. Operations at the site will remain suspended, while the event is investigated, and a business recovery plan is developed.
The company intends to shed more light on the suspension in its upcoming quarterly report, which is expected to drop later this week.
The suspension follows turbulent year for the site’s operations, which were placed on care and maintenance for three weeks back in March due the onset of the COVID-19 pandemic. Operations at the site were under review at the time, due to poor operating margins and a workforce reduction early last year.
Despite the disruptions, the company reaffirmed the site’s logistics and intends to continue operating the site, using a revised “hub-and-spoke” model to pool investment and maximise profitability.
Gordon Stothart, IAMGOLD President and CEO, said the cautious and empirical based approach reflects the site’s current operational reality.
“Additionally, given significant mill capacity availability, we are actively pursuing a ‘hub-and-spoke’ strategy at Westwood that could bring regional exploration value forward from assets like the recently acquired Fayolle Property and the optioned Rouyn Gold Project, and enhance the overall value of Westwood with incremental production growth from supplementary feed,” he added.
The company did not reveal if the suspension will affect the site’s expect production guidance.
IAMGOLD (IMG) is 1.63 per cent down and is trading at C$4.80 per share at 9:36am EDT.
