PRECIOUS METALS

Equinox restarts Los Filos despite continuing protest

Xochipala community members remain on site

 Equinox Gold has restarted Los Filos in Mexico but mining activities near the openpits remain disrupted

Equinox Gold has restarted Los Filos in Mexico but mining activities near the openpits remain disrupted

However Equinox said certain members of the Xochipala community remained "illegally camped" near the Guadalupe and Bermejal openpits, disrupting mining activities in this area.

The operation was paused a month ago due to "illegal blockades" by unionised employees and members of Xochipala, who were both demanding payments in excess of their contractual agreements, Equinox said. 

Canaccord Genuity analyst Dalton Baretto had dubbed the June suspension Groundhog Day, given the mine had been blockaded for months in 2020 by members of the Carrizalillo community in a dispute over a social collaboration agreement, warning questions around community relations were likely to be a "permanent overhang" at the mine.

"Los Filos representatives continue to engage with government and Xochipala representatives to achieve resolution," Equinox said yesterday.

Equinox is aiming to expand production at the complex by developing a second underground mine and third openpit.

Los Filos had produced 58,453 ounces of gold in 2020, disrupted by COVID-19 restrictions and a stop-start blockade, and had been expected to produce 170,000-190,000oz of the company's forecast 600,000-665,000oz this year.

Equinox is due to report its second quarter results next week.

Its shares (TSX: EQX) closed almost 6% higher yesterday to C$8.32, remaining at the lower end of a one-year range, valuing it at $2.5 billion (US$2 billion).

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