Off The Wire
Torex Gold suspends El Limón Guajes mine output due to Mexico's COVID-19 rules
(Kitco News) - Torex Gold Resources Inc. (TSX: TXG) Thursday announced that operations will be temporarily suspended at the company’s El Limón Guajes mine until April 30 due to rules initiated by the Mexican government to combat the COVID-19 outbreak.
Further, the company withdrew its 2020 production guidance.
A 72-hour planned maintenance outage in the processing plant started on March 31, and production will not be restarted right away when the maintenance is concluded, said Fred Stanford, president and chief executive officer.
“Our balance sheet is well positioned to weather this pandemic, with a strong cash position,” he said. “The ‘balance sheet’ of our employees will also be maintained through this period of suspension with the continued receipt of base compensation and the upcoming receipt of the 2019 profit-sharing payments for Mexico-based employees.”
Corporate work is expected to continue, the company said.
“Absent pandemic-related issues, we had expected to maintain previously disclosed guidance,” Stanford said. “At this time, there is no clear line of sight as to when, how often, and how long this pandemic is going to affect the ability to produce. We don’t anticipate re-establishing guidance until we have a clear line of sight as to the pandemic related ability to produce during 2020.”
Torex produced 454,811 ounces of gold in 2019, topping the previous annual record of 353,947 ounces from 2018 by 28%.