Newmont (TSX: NGT) is currently unable to deliver contracted metal from its Penasquito Mine in Mexico. Reuters this morning has reported that the company has declared force majeure on certain deliveries.
“Due to interruptions in production caused by the union strike at Newmont’s Peñasquito mine in Mexico, force majeure has been declared with certain customers for some of the mine’s products,” Newmont reportedly said in a statement to the outlet.
The declaration is a result of ongoing strike action that is reducing output from the mine. Penasquito produces zinc, lead and gold, with the mine expected to produce somewhere between 190,510 and 208,654 tonnes of zinc in 2023, and between 77,111 and 86,183 tons of lead.
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The mine saw a strike begin on June 7, when the company was notified by its union that it was to strike in an effort to get Newmont to meet their demand of increasing a profit-sharing benefit under the collective bargaining agreement from 10% to 20%. The profit sharing benefit was implemented in July 2022, however it seemingly was too little for the satisfaction of the union.
Discussions on the matter are said to be ongoing.
Newmont last traded at $55.32 on the TSX.
Information for this briefing was found via Reuters, and the sources 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.
