Torex Gold Resources Inc. Not a Guerrero Problem, a Mexican Union Problem: Hindered by Trespassers – We See Value & Volatility: Scotiabank Report.
OUR TAKE: As stated on the Q4 conference call, Torex needs a full complement of workers to ramp up its mining rates, but there is not enough living space for them. The reason is that the Los Mineros Union supporters continue to be a security concern on the public access road and the worker accommodation camp is deemed inaccessible. The company is also running out of ore and needs access to El Limon where 80% of production is scheduled from this year. On Monday, trespassers apparently backed by Los Mineros attacked mine workers when they came to mine in the El Limon pit.
In our opinion, the issues facing Torex are directly related to the Los Mineros Union and not function of being in Guerrero state or a lack of social license. Actually, the vast majority of local residents want to resume working, and late last year employees voted overwhelmingly to have the illegal blockade removed so they could return. The actions of Los Mineros are not unique to this situation as this union has blockaded mines across Mexico for many years in protest of existing and established worker unions such as the CTM at ELG.
See complete report here:Not a Guerrero Problem, a Mexican Union Problem- Hindered by Trespassers-Scotiabank