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Be the first with the news that moves the market- Telson Mining (TSN) is winding down operations at the Campo Morado mine, after Mexico’s Government implemented new COVID-19 lockdown measures
- The Government announced a nation-wide shutdown of non-essential operations last week, to stem the spread of COVID-19
- The Campo Morado mine only resumed operations in January, having been on care and maintenance since August 2019
- The shutdown should last until April 30, but could extend if Mexico’s case numbers continue to grow
- Telson Mining (TSN) is down 8.33 per cent, with shares trading for C$0.055 and a market cap of $8.75 million
Telson Mining (TSXV:TSN) is the latest company to be impacted by Mexico’s shutdown of all non-essential operations, due to COVID-19.
The Mexican Government announced the measures last week, after confirmed COVID-19 cases in the country surpassed 1,000. Since that time, the number of cases has more than doubled to 2,154 at the latest count.
As a result, the company’s Campo Morado mine is now winding down operations. Telson is reducing the number of employees onsite, and placing the site on care and maintenance until April 30.
The government-mandated shutdown should last until April 30, but could extend if case numbers continue to worsen.
Telson Mining’s President and CEO, Ralph Shearing, is conscience of the risks that COVID-19 poses.
“The health and safety of our employees, union partners, contractors, and the communities in which they work and live are a priority.
“We will continue to provide significant support to our employees and, where possible, to local community residents. To date, Telson has not experienced any incidents related to COVID-19 at its sites or corporate offices,” he said.
This is just the latest story in the mine’s troubled last few years.
Telson bought the poly-metallic mine in 2017 and had it operational by October of that same year. However, the company placed the mine on care maintenance in August 2019, due to low zinc prices.
The company chose to restart the mine in January of this year.
In tandem with the rise of the COVID-19 pandemic, the price of zinc has continued to fall. It is currently at its lowest point in four years.
Telson has not commented on the recent price drop and its potential impact on operations at Campo Morado.
Telson Mining (TSN) is down 8.33 per cent, with shares trading for C$0.055 at 9:40am EST
