The year of 2022 is proving to be a tough one for Equinox Gold (TSX: EQX), whom this morning announced that operations have been suspended at its Los Filos Mine in Mexico. The suspension follows a suspension of operations at the firms RDM Mine earlier this year in Brazil, as well as the withdrawal of related guidance.
The suspension at Los Filos comes as a result of apparent tensions with the local community. Members of the Mezcala community are reportedly performing an illegal blockade of the property, which is preventing the delivery of supplies required to maintain operations.
Equinox has stated that it will engage with the community to find a solution to the issue at hand. Demands from members of the community in relation to the blockade were not provided by the company.
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The last time the mine experienced a blockade, which was just over a year ago in June 2021, the company saw access to the mine halted as a result of certain unionized employees and members of the Xochipala community demanding payments in excess of contractual agreements. That blockade lasted approximately six weeks, impacting operations throughout. The firm had also experienced a similar blockade in 2020.
Los Filos is one of the firms largest assets, accounting for 26% of revenue in the three months ended June 30, 2022.
Equinox Gold last traded at $4.61 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
