Precious Metal Miners End 2020 High Despite Investment LowsBy MBN Staff | Thu, 12/31/2020 - 13:26
Stock value of precious metal miners in Mexico has skyrocketed in 2020, even as the sector receives less investment due to uncertainty. Read this and more in the weekly mining roundup!
Mexican Precious Metals Miners Finish 2020 High
The stock value of mining companies has rocketed in 2020 despite the global pandemic that has plummeted stock prices in other industries. A report by El Economista shows that the stock yield of Industrias Peñoles and Grupo Mexico, both Mexican producers, has risen by 72.98 percent and 58.62 percent, respectively, as the pandemic led investors to flock to precious metals, particularly gold. Industrias Peñoles is Latin America’s leading producer in refined gold and, through its subsidiary, Fresnillo, the largest silver producer in the world. Grupo Mexico, on the other hand, is the fourth largest producer of copper in the region.
Mexican Mining Investment Drops Following COVID-19 and Political Concerns
Foreign direct investment in Mexican mining dropped in 2020 compared to 2019, reports BNAmericas. FDI in metallic mining reached US$510 million in the period from January to September 2020, 15.3 percent lower than the investment in the same time period of 2019. While the full extent of the effects is unclear, 2020 FDI appears to be hiking up to 2019 levels in 4Q20.
CAMINEX Warns about Lack of Clarity Regarding Mining Royalties
The Mexican mining chamber is concerned about the lack of transparency regarding the distribution of mining royalties meant to benefit local communities. Previous rules were scrapped to bring the cash under the control of the federal government but mining companies are now unsure where the money will be spent, BNAmericas reports.
GR Silver Gears up to Purchase Marlin Gold Mining from Mako
GR Silver Mining and Mako Mining Corp. have agreed to sign a definite agreement by Jan. 31 regarding arm’s length transaction. In this transaction, GR Silver would purchase 100 percent of shares of Marlin Gold Mining from Mako.
Fatality Reported by Gold Resource Corporation at Arista Underground Mine
The company regretfully reports that an employee was fatally injured on Dec. 24 while working at the Arista mine in Oaxaca. An ongoing investigation regarding the exact cause of the incident, which involved a light vehicle in an unauthorized area of the mine, is being conducted by the authorities with help from the company. Gold Resource Corp. is currently reviewing safety procedures, noting that these are a priority for the company, and extends its sympathies to the relatives of the employee who was involved in the accident.
Miners Applaud US Spending Bill
Reuters reports that last Sunday, President Donald Trump signed a pandemic aid and spending package worth US$800 dollars to fund rare earths and strategic minerals research. Mining companies applaud the move, as it will help them compete against China’s strong position in the sector.