Coronavirus company news summary – Glencore cuts capex – Lucapa Diamond to restart – Bank of England urged to sell gold

1 May 2020 (Last Updated May 1st, 2020 09:23)

1 May

Glencore has cut its capital expenditure and output targets for this year to reflect the impact of Covid-19 on its operations. In its first-quarter production data, the company reported that spending would decline by $1bn-$1.5bn from the $5.5bn that was originally expected. Glencore was forced to close some operations following government restrictions to curb the spread of the virus.

Yamana Gold is working with its host communities to support their needs during the Covid-19 pandemic. In its quarterly result, the company announced that it formed a crisis response group comprising its entire senior executive group and operational leaders in the early phases of the outbreak. This was aimed at ensuring it was in a position to take decisive action in what remains a fluid and fast-moving environment.

Lucapa Diamond and its partners Endiama and Rosas & Petalas have announced the restart of scaled operations at the Lulo alluvial diamond mine in Angola. Lulo operations were reduced to essential services only following the declaration of a State of Emergency in Angola to contain the spread of Covid-19. The mine will resume operations on a two shift six-day week basis this week.

Venezuela is urging the Bank of England to sell a portion of the country’s gold reserves to the United Nations to help with its efforts in response to Covid-19. Reuters reported that it was not immediately evident the quantity of gold Venezuela was asking the bank to sell. Venezuelan gold on deposit at the Bank of England is expected to be worth around $1.7bn at current market prices.