- Write by:
-
Friday, March 27, 2020 - 12:19:10 PM
-
566 Visit
-
Print
Mining News Pro - The ongoing covid-19 pandemic has created “significant operating and financial challenges” for Sprott Resource Holdings’ primary operating asset Minera Tres Valles (MTV), the company stated in its 2019 annual report.
According to Mining News Pro - “The outbreak of the coronavirus has created near-term copper price uncertainty and significant losses across the world’s financial marketplace and social dislocation,” stated Michael Harrison, interim president and CEO of SRHI.
He added that the company and its primary operating subsidiary, MTV, are “not immune to this ongoing dynamic.”
MTV is the operator of a producing copper mine located 9km from Salamanca, Chile, consisting of one open-pit and one underground deposit. Sprott currently has 70% ownership of the entire mining complex.
The mine achieved a record production of more than 1,800 tonnes of copper cathodes during the fourth quarter and met revised guidance for the year with production of 7,055 tonnes at a cost of $2.66/lb.
However, events including the continuing US-China trade dispute, historic drought conditions, social unrest and most recently the covid-19 pandemic have created “significant operating and financial challenges” for MTV, Harrison said.
With the government of Chile declaring a state of emergency over the covid-19 outbreak earlier this week, officials of Salamanca formally requested MTV to temporarily halt or restrict operations, Harrison said. Immediately after, MTV began implementing measures in respect to the requests.
He added that while the mine plan for MTV is sustainable longer term at higher prices than today, it is critical for the company’s primary stakeholders to provide the financial support to execute the plan. Harrison believes these low copper prices and market uncertainties are short term and anticipates the copper price to recover later in 2020.
At the moment, Sprott is “not in a position to provide guidance for 2020” given the uncertainty, and the company is working to impose restrictions in its mining operations in cooperation with the local community and reviewing mine alternatives for the rest of this year.
Harrison emphasized that the combination of economic and social impacts has created “significant liquidity challenges for MTV” that it cannot resolve on its own.
Shares of Sprott Resource Holdings plunged nearly 20% on the TSX at market open Thursday. The company has a market capitalization of C$10 million.
Short Link:
https://www.miningnews.ir/En/News/507244
Anglo American Plc said it is has received an unsolicited non-binding combination proposal from BHP Group.
Toronto-listed miner OceanaGold Corp said on Wednesday it will raise 6.08 billion pesos ($106 million) through an ...
A key measure of Chinese copper demand just sank to zero, another indication that global prices are not balanced with ...
Canadian miner First Quantum Minerals (TSX: FM) believes it will be able to take the already mined 121,000 tonnes of ...
Canadian miner First Quantum Minerals said on Tuesday that it has cut its debt by $1.14 billion in the first quarter.
Chile is expected to produce a record 5.8 million metric tons of copper in 2025, the state-run Chilean Copper Commission ...
Copper traded near $10,000 a ton, hitting a new two-year high on its way, as investors continue to pile in on a bet that ...
A Native American group has asked all members of a US appeals court on Monday to overturn an earlier ruling that granted ...
Codelco is exploring more partnerships with the private sector as Chile’s state copper behemoth looks to recover from a ...
No comments have been posted yet ...