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Mining Weekly reported that Primero Mining Corp.’s (TSX:P,NYSE:PPP) 2015 silver sales could be impacted by issues with the import and export licenses belonging to its subsidiary.
Mining Weekly reported that Primero Mining Corp.’s (TSX:P,NYSE:PPP) 2015 silver sales could be impacted by issues with the import and export licenses belonging to its subsidiary.
The subsidiary had its import and export licenses suspended in May, and as a result about 880,000 ounces of silver weren’t sold during Q2.
As quoted in the market news:
Customs authorities had suspended the licences owing to a discrepancy over Primero Empresa Minera’s (PEM’s) address related to its corporate office relocation from Mexico City to Durango.
PEM had since clarified the discrepancy and had been meeting with customs officials, but had regrettably not been reinstated on the customs registry.
Primero’s subsidiary was able to source necessary supplies locally so that the San Dimas mine and mill continued to operate uninterrupted.
PEM was currently refining its gold/silver doré in Mexico and selling its gold in the normal course. However, the company was unable to deliver silver under its silver purchase agreement with metals streaming firm Silver Wheaton, which required delivery outside of Mexico. As a result, about 630 000 oz of silver were not delivered under the silver purchase agreement in the second quarter and PEM did not get the benefit of spot sales on about 250 000 oz.
This represented about $6.5-million in delayed revenue.
Meanwhile, senior customs officials had confirmed that Pimero’s registry status was being reviewed, but the company had not been given a definitive date for reinstatement of the licences.