Coronavirus company news summary – Minerals Council South Africa members fund oxygen products – Fortuna Silver reports net loss in Q2 – QRC submits Covid-19 recovery plan

14 August 2020 (Last Updated August 14th, 2020 09:28)

14 August

Minerals Council South Africa members have together contributed R4.7m (approx. $269,000) towards oxygen and oxygen-related products for the Eastern Cape, where around 61,000 mining employees originate. The companies are African Rainbow Minerals, Anglo American, AngloGold Ashanti, Exxaro, Fraser Alexander, Glencore Alloys, Gold Fields, Harmony, Impala Platinum, Northam Platinum, Royal Bafokeng Platinum, Seriti and Sibanye-Stillwater. The council said that over the past six months, the mining industry has undertaken intensive efforts to address Covid-19 at their operations.

Fortuna Silver Mines has reported a net loss of $5.7m for the second quarter of this year due to Covid-19 volatility and government mandated shutdowns. The company president and CEO Jorge Ganoza said that its cost and investment reduction plans have allowed it to maintain a neutral free cash flow position from ongoing operations despite the loss. Ganoza further added that the company will remain optimistic as it adapts and refines its plans to cope with constraints related to Covid-19.

Caldas Gold has reported revenue of $6.4m in the second quarter of 2020, which is about 26% lower than the second quarter last year, and reflected the Covid-19 impact on production. Furthermore, production in the quarter reflected limitations on its workforce due to quarantine, totalling 3,851oz of gold. The company also continued to operate its Marmato mine, at a reduced production rate, despite the challenges associated with the Covid-19 in Colombia.

The Queensland Resources Council (QRC) has submitted a new resources industry plan for the Covid-19 economic recovery, which will assist keeping Queenslanders in work and get more back into employment. QRC chief executive Ian Macfarlane said that the industry plans to work in partnership with government to seize on the opportunities for new investment and new jobs across the state. The Resource Industry Recovery Agenda plan has been presented to the government, all Members of Parliament and the Parliamentary Inquiry into the government’s economic recovery.