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August 13, 2020

Coronavirus company news summary – Covid-19 impacts Wheaton’s Q2 production – Harmony Gold provides production update – Hudbay Minerals posts Q2 loss

By Matthew Hall

13 August

Wheaton Precious Metals has reported that there was an impact on the company’s production in the second quarter due to temporary shutdowns of some operations as a result of the Covid-19 pandemic. The company president and CEO Randy Smallwood said that sales volumes remained strong and resulted in a record 322,000 gold equivalent ounces sold during the first half of this year. The company established a dedicated fund during the quarter to help address the effects of Covid-19. The funds were used to provide food security, medical services and supplies, and economic opportunities to those in need.

Harmony Gold has reported that the company could manage to achieve up to 75% of planned production during the last quarter of its financial year, despite disruptions that were caused to its operations by the pandemic. However, the company’s year-on-year total gold production was 15% lower at 1.2-million ounces as a result of the national lockdown imposed due to the virus and phased recovery in South Africa. The country was placed under lockdown on 27 March to curb the spread of Covid-19.

Indian company Gujarat Mineral Development Corporation (GMDC) expects that the impact of Covid-19 on its business in general and financial risks is likely to be short-term in nature. The company, which is mines lignite, bauxite and other minerals, said that the impact on the demand of lignite due to lockdown may only have short-term effects considering the measures put in place by the Central and the State Government to revive the economy.

Canadian mining company Hudbay Minerals has reported a $51.9m loss in the three months to 30 June after the eight-month suspension of its Constancia copper mine in Peru weighed on the results. For its Peruvian operations, the company revised down its production targets to 65,000-75,000t of copper and 25,000-35,000 ounces of precious metals. Earlier, Hudbay had forecast 80,000-95,000t of copper and 45,000-55,000 ounces of gold for this year. The updated Peru production guidance reflects the Constancia suspension period and the expected start of mining at Pampacancha early next year.

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