PriceSensitive

Fortuna Silver suspends mine after employee death

Mining
TSX:FVI
06 July 2020 15:34 (EDT)
Fortuna Silver Mining Inc - President and CEO, Jorge A. Ganoza

Source: Satori Traders

Fortuna Silver Mines (TSX:FVI) has suspended operations at the Caylloma Mine in Peru, following the death of a contracted employee over the weekend.

The unnamed 34-year-old man died last Sunday, although the cause of the death remains unknown at this time.

The company has disclosed that the contracted employee previously tested negative for COVID-19. Despite the negative result, the company has chosen to voluntarily suspend operations to sanitise and disinfect the site.

With employees currently being demobilised, a reduced task force with remain on site to maintain and monitor the site during the suspension.

Fortuna is currently working with local authorities to ascertain the cause of death.

The company revealed in April that six employees at the mine site had tested positive for novel coronavirus but chose to continue operations until recently.  

The Peruvian Government is understandably apprehensive of any yet undetermined deaths in the region, as COVID-19 continues to impact the country’s population.

Thus far, the Peru has reported more the 303,000 cases of COVID-19, resulting in more than 10,000 deaths. However, Arequipa, where the Caylloma Mine is located, accounts for just under 8,000 of reported cases.

Turning to the company’s recent market performance, strong precious metals prices have helped Fortuna recover during after an initial dip, following the onset of the pandemic.

After almost halving between mid-February and mid-March, the company’s share price has staged a sharp three-month recovery. Early last month Fortuna shares posted a 52-week high and have risen further still in recent weeks.

The company has yet to outline if the mine suspension is likely to impact its quarterly guidance.

Fortuna Silver Mines (FVI) is down 2.56 per cent and is trading at C$6.47 per share at 1:19pm EDT. 

Related News