Hecla Mining (NYSE:HL) has today disclosed details about its move to withdraw its 2020 financial guidance. The business guru asserts that it found it necessary since it would pave the wave for the assessment of the COVID-19 pandemic and its effects on costs and production.
According to the business guru, the government issued an order for the shutdown of two mines in Mexico and Canada.
All is not lost for the company considering that some of its operations will be going on after the government classified them as essential businesses. These are some three mines and all of them are within the United States. Hecla says that the three are representative of about 60% of its gold equi.output.
The preliminary Q1 results are already out and the production of silver has spiked up by about 2% to stand at 2.98 oz. On the other hand, the production of gold has taken a downward trajectory by a margin of 55 to stand at 57,238 oz.
The quarter-end cash of the company is said to have amounted to about $215M and it seeks to do all within its means to survive the Corona scourge that has shaken the world with impact.
This deadly pandemic doesn’t seem to be sparing anyone and Coeur Mining Inc (NYSE:CDE)
Is the other victim of is absurd effects. The company has taken to suspending its mining and processing operations temporarily. It is still in the early stages of the undertaking and it hopes that the move is for the best. These are the operations that have been going on at its Palmarejo gold-silver complex in Mexico. It seeks to co-operate with the government’s efforts to stage a fight against the deadly virus. The Mexican government had come out strongly to dismiss mining as an essential business. The operations might be resuming in April.
Franco Nevada Corp (TSE:FNV) is the other company caught up in the Coronavirus impact. It took to the withdrawal of its gold and energy sales guidance after witnessing the uncertainties associated with the scourge. Some analysts working with the National Bank Financial have aired out their opinions outlining that the company won’t need more funds to cater to financial commitments at the moment.
