Make Kitco Your Homepage

Surge in COVID-19 cases may limit Jaguar Mining's production in Brazil

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Jaguar Mining (JAG.TO) said today that the company is strengthening its current COVID-19 response plan in Brazil as the state government of Minas Gerais declares a curfew from 8:00 pm to 5:00 am until March 31.

According to the company’s statement, the local communities near Jaguar operations have also seen an increase in COVID-19 infection. The local Prefeituras (area governments) are currently considering measures to slow the spread of COVID-19. Jaguar, along with other mining companies operating in or near the communities, continue to meet with the Prefeituras to provide support and to work with them in implementing any potential steps and viable solutions to protect the communities while keeping the economy intact.

It is expected that any lockdown and/or increased protocols will be in place until the end of March and probably longer, until COVID-19 cases significantly decline.

Jaguar added that the effects of COVID-19 began impacting the company in 2020, but the company has witnessed its highest levels of cases in the first quarter of 2021. Production has been and continues to be impacted at both operations.

"The current increase in the intensity of our COVID-19 measures, as dictated by government guidelines and the pandemic, may also limit production in the near term. We are adapting, but the increase in absenteeism and the limitations in contractor services is and will have an impact on production," the company said in a statement.

Jaguar currently estimates that it can produce within its production guidance for the year, assuming conditions do not worsen, and lockdown restrictions do not become more severe or extend much past March 2021.

Jaguar Mining is a Canadian-listed junior gold mining, development, and exploration company operating in Brazil with two gold mining complexes and a large land package with significant upside exploration potential from additional mineral claims.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.