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Be the first with the news that moves the market- Sierra Metals Inc. (TSX:SMT) has suspended operations at the Yauricocha Mine in Peru
- After the government declared a state of emergency due to COVID-19, the company was forced to suspend operations to comply with travel restrictions
- Sierra Metals expects to restart the mine in 15 days, when the ban is lifted
- Despite the suspension, the company does not expect the 2020 guidance to be severely impacted
- Sierra Metals Inc (SMT) is up 46.32 per cent, with shares trading at C$1.39 and a market cap of $225 million
Sierra Metals Inc. (TSX:SMT) has suspended the Yauricocha Mine in Peru, after the government declared a state of emergency to limit COVID-19’s impact.
The government measures require citizens to stay at home except to retrieve food, money or medical assistance. The ban also restricts travel within the country.
The suspension will last 15 days but could extend if the rate of new case doesn’t begin to diminish.
Peru confirmed its first case 10 days ago. Since then the number of confirmed cases has risen to 117.
However, Sierra Metals have stated they expect to resume operations in 15 days or sooner. The company is hoping that the government will allow mines to operate during the country-wide travel ban.
Igor Gonzales, President and CEO of Sierra Metals, is in favour of the cautionary measures.
“We take the safety of our employees very seriously and have complied with the government’s requests.
“We have sent 470 staff home from the Mine, while an emergency staff of 150 remain at the site. Management continues to follow the recommendations provided by the World Health Organization and Peruvian Health Authorities,” he said.
Despite the suspension, the company does not expect the 2020 guidance to be severely impacted. Yauricocha is said to be running ahead of budget and therefore can cease operations, while remaining within its projected targets.
Furthermore, the site currently has 37,000 tonnes of ore stockpiled, meaning operations and processing can resume quickly once the ban in lifted.
Sierra metals also operates the Bolivar and Cusi mines in Mexico. Operations at these mines remain unaffected thus far.
Sierra Metals Inc (SMT) is up 46.32 per cent, with shares trading for C$1.39 at 12:40pm EST.
