Yamana Gold pares back activity at Cerro Moro mine in Argentina amid coronavirus outbreak

Yamana Gold Inc (TSE:YRI) (NYSE:AUY) revealed it had scaled back operations at its Cerro Moro mine in Argentina in the wake of the coronavirus but said the move wasn't expected to have 'meaningful impact 'on the miner's production and cash flows. The Toronto-headquartered precious metals producer also updated shareholders on its other activities in Argentina and other countries where it operates. The group has production, development, and exploration assets throughout the Americas, including Canada, Brazil, Chile. READ: Yamana Gold boosts production guidance by 21% at Jacobina mine in Brazil The firm said none of its employees had been diagnosed with the virus but it established a crisis response committee in the early phases of the coronavirus outbreak. Following the mandatory social isolation declaration from the government of Argentina, the firm said it would implement a temporary, partial demobilization of the workforce at Cerro Moro. The mandatory self-isolation period runs from March 20 to March 31. Underground operations will be reduced and Cerro Moro will operate during this period largely from its open pit operations and from stockpiled material, the firm said. A return to full capacity is expected once the self-isolation period has ended, the firm said. "These actions are not expected to have a meaningful impact on the company’s production and cash flows as Cerro Moro has performed well so far in the quarter. Further, the first quarter had been budgeted to be Cerro Moro’s lowest quarter in terms of production and cash flows, and most of the company’s other mines are contributing significantly more cash flow, and with production levels ahead of budget at most mines," said the miner. Other projects At the Agua Rica project in Catamarca, activity will be similarly temporarily reduced, it said. Efforts are currently mostly corporate related as it advanced the feasibility study for the project, the firm added. Yamana also told investors it had reviewed and updated its business continuity planning to minimize disruptions, in certain cases stockpiling additional ore to ensure continuity of operations in the event of an interruption. The company said its annual general meeting on April 30 will be in a virtual format. Shares in New York added  as much as 11% in pre-market deals before easing back to US$3.03, whle in Toronto the comapny's stock fell 3.75% to C$4.15. Contact the author at giles@proactiveinvestors.com