Subscribe
Be the first with the news that moves the market- Torex Gold (TSX:TXG) will resume operations at its flagship El Limón Guajes Complex at the end of May
- The news comes after the Mexican Government designated mining an essential service and relaxed quarantine restrictions throughout the country
- Operations at the mine have been suspended since April 2
- Torex posted a C$66 million loss in its first quarter, due to currency variance between the US dollar and the Mexican Peso
- Torex Gold (TXG) is up 2.6 per cent, with shares trading at $18.15 and a market cap of $1.5 billion
Torex Gold (TSX:TXG) is resuming mining operations at its El Limón Guajes Complex in Mexico at the end of the month.
The Mexican Government recently designated mining as an essential service and allowed operations at the site to resume.
Torex has confirmed enhanced health protocols for the site will remain in place for the time being.
The President and CEO of Torex Fred Stanford is pleased that operations will soon recommence at the mine complex.
“With the Government lifting the suspension decree for mining as of May 18th, mobilisation for a full restart of operations will begin immediately. The processing plant will continue to treat low grade stockpile material for the remainder of May.
“By that time, the crowds will have ramped up the mining operations, and the plant will begin processing regular mine grade material,” he said.
Consequently, Torex has stated that it expects June will be a routine production month, failing any other pandemic-related disruptions.
Earlier this month, the company reported a loss C$66 million in its first quarter.
The loss was primarily caused by currency fluctuations between the US dollar and the Mexican peso, due to coronavirus playing havoc with world currency markets.
The El Limon Guajes Complex has sat idle since the start of April, when the Mexican Government suspended all mining operations country wide to stop the spread of the coronavirus.
At the time, the company initiated a 72-hour planned maintenance outage and has since kept the site on care and maintenance until today’s announcement.
The majority of the suspension fell into the second quarter. However, Torex has yet to update its full-year guidance to account for the expected drop in output.
Torex Gold (TXG) is up 2.6 per cent, with shares trading for $18.15 at 2:29 pm EDT.
