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Pan America Silver posts COVID-19 update

Mining
02 April 2020 13:20 (EDT)

Pan American Silver Corp (TSX:PAAS) is reducing staff at their La Colorada and Dolores mines in Mexico, due to new COVID-19 shutdown orders.

The Mexico Ministry of Health has announced it will shut down all non-essential activity in the country until April 30, to combat the spread of COVID-19.

The company has also announced that throughput will be reducing by 10 to 20 per cent at its Timmins operation in Canada to comply with social distancing requirements.

The hope is that by reducing staffing numbers at operations, offices and on personnel transports they can reduce the risk of infection and spread of the viral outbreak.

The CEO and President of Pan America Silver Michael Steinmann said the company was carefully monitoring developments regarding COVID-19.

“We are implementing the preventative measures recommended by health authorities and adapting our operations to government or company-led directives.

“The efforts of our employees have been invaluable in helping us manage this very challenging by temporary period, and I am grateful for their dedication,” he said.

Pan America have already suspended operations at mine sites in Peru, Argentina and Bolivia in compliance with mandatory national quarantines in those countries.

The governments in those countries have declared that the quarantine periods are extended to April 12, 2020 in Peru, April 13 in Argentina and April 15 in Bolivia.

The company is resigned to the fact that those quarantines may be extended, and production at their South American production facilities could be delayed further.

Pan American Silver (PAAS) is up 7 per cent and is trading at $22.24 per share at 1:19pm EST. 

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