Endeavour Silver reopens Mexico mines
El Cubo project. (Image courtesy of Endeavour Silver.)
Canada's Endeavour Silver (TSX: EDR) (NYSE: EXK) has resumed operations at its three underground silver-gold mines in Mexico, following approvals from the country's health authorities.
The Vancouver-based silver producer noted its mines and plants were ramping up to achieve normal operations. It also said exploration crews would restart mapping, sampling and drilling programs in June.
It has three underground silver-gold mines in Mexico: Guanacev?-, Bola??itos and El Comp??s
The announcement follows news from fellow Canadian miner Fortuna Silver Mines (NYSE: FSM) (TSX: FVI) that its San Jos?(C) mine, in Mexico's southern state of Oaxaca, is back at full tilt.
Earlier this month, EndeavourSilver posted a net loss in the first quarter, with revenue declining due to asuspension of operations at the El Cubo project. Results were also affected byoutput that went into inventory rather than immediate sales.
Endeavour has three silver-gold mines in Mexico: Guanacev?- mine in the Durango state, Bola??itos mine in Guanajuato and El Comp??s mine in the state of Zacatecas.
Several other companies, includingNewmont Mining (NYSE: NEM), Pan American Silver (TSX: PAAS), Alamos Gold (TSX,NYSE: AGI), Argonaut Gold (TSX: AR), Sierra Metals (TSX: SMT), Excellon Resources (TSX: EXN) and Torex Gold (TSX:TXG), have either restarted their Mexican mines or plan to do so in the comingdays.
Hardest hit metal
Silver has been the commodity hardest hit by mine closures mandated by governments to stop the spread of the coronavirus.
Mexico, the world's top producer ofthe metal, is facing in 2020 one of the deepest recessions in its history as analready weak economy can barely cope with the impact of the coronavirus outbreak.
The country's economy is forecastto contract 6.7% this year, deeper than during the devastating Tequila Crisisof the mid-1990s, the latest Citibanamex analysts survey shows.
Mexico is responsible for nearly23% of world production of silver, churning out more than 200 million ounceslast year, up from 196.6 million ounces in 2018.
It also has major copper and zincmines, operated by Grupo Mexico and Southern Copper, and produces a significantamount of gold, making the mining sector responsible for about 4% of thenation's gross domestic product.