Iamgold (TSX IMG; NYSE: IAG) has resumed operations at its Rosebel gold mine in Suriname, which was shut down in June after union leaders asked their members to put down their tools in response to workers testing positive for the coronavirus.
The Toronto-based miner said operations resumed on July 24 after it received confirmation and advice from the country’s Covid-19 outbreak management team that it was safe to reopen the mine, although with fewer employees.
Iamgold said the decision was made in conjunction with the Rosebel Goldmines Employees Organization, which represents mine workers.
New sanitary protocols in place include screening, distancing measures and taking workers’ temperatures.
“With Rosebel back online, Iamgold is in position to benefit from current strong gold prices, as over 30% of its gold production comes from this asset,” BMO analyst Jackie Przybylowski said in a note to investors, adding that the mine is the company’s “most valuable asset, representing about 40% of the minesite NAV.”
Rosebel is located in Suriname’s rich Brokopondo district, 85 km south of the capital city of Paramaribo.
The Canadian company owns 95% of the gold mine and the government of Suriname holds the remaining 5%.
The miner warned that ongoing uncertainty about the global pandemic may impact its operating activities and financial results this year.
In May, the company cut its 2020 production guidance from 700,000-760,000 oz. gold to 685,000-740,000 ounces.
Iamgold is scheduled to release its quarterly financial results on August 4.
— This article first appeared in MINING.com.
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