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Be the first with the news that moves the market- Lundin Mining (TSX:LUN) has announced its response to the COVID-19 crisis
- The mining company has implemented an extensive COVID-19 containment plan
- As a result of economic uncertainty, Lundin has not yet updated its guidance
- Construction on the Neves-Corvo mine in Portugal has been suspended
- Lundin Mining (TSX:LUN) is up 5 per cent, trading for $5.57 per share with a market cap of C$4 billion
Lundin Mining (TSX:LUN) has announced a suite of policies designed to combat the spread of COVID-19 across the business.
The Toronto-based company has mines in Brazil, Chile, Portugal, Sweden and the US, producing copper, zinc, gold, and nickel.
Lundin has suspended all company travel, and moved as many non-essential workers offsite as possible.
The globalised nature of the business opens them up to significant risk from the coronavirus.
The company also announced that any workers in the age group most vulnerable to the virus are working from home.
Lundin has adopted most of the standard precautionary measures, such as 14 days self-isolation for anyone who has traveled. There is also medical screening for all employees entering the site.
The company has also closed most satellite and community offices, and had employees from there start working from home.
The virus has already affected the company, with the company’s Neves-Corvo mine in Portugal suspending construction work ten days ago.
Lundin has not yet updated its guidance, as it is unsure what effects COVID-19 will have on the highly fluid situation.
The company has not identified any operational effects to date, but admits that this is likely to change moving forward.
In light of this, and possible demand reductions for primary metals, Lundin is investigating cost-cutting measures and the deferral of all capital expenditures.
The potential measures include mothballing all non-essential projects, reducing exploratory spending, deferring waste mining, and plant modifications.
Current production for 2020 is being reviewed, as is any cost-saving measures the company can find.
Lundin believes it is in a strong position, with $390 million cash on hand and just $95 million in debt.
Lundin Mining (TSX:LUN) is up 5 per cent, and trading for $5.57 per share at 2:30pm EST.
