2023-06-14 12:32:26 ET
Unionized workers at the Peñasquito mine in Mexico have plenty of funds available to extend their strike, Bloomberg reported Tuesday, as a dispute with owner Newmont ( NYSE: NEM ) enters a second week.
Strikers at Mexico's biggest gold mine have a "resistance fund" to prolong the strike and are "willing to continue the movement until this is cleared up," the labor secretary of the Sindicato Minero union told Bloomberg.
While Newmont ( NEM ) has said workers are pushing for an increase in profit sharing to 20% from an agreed 10%, the union official said demands are centered around a clarification on how the plan is calculated rather than a percentage increase.
The Peñasquito mine is Newmont's ( NEM ) third-largest by sales, amassing $2.8B in revenues in 2022, which was down 17% from the previous year because production lagged; it produced 32.4M oz of silver in 2022, making it the largest silver mine in Mexico and the second largest silver mine in the world.
UBS analysts estimate Newmont's ( NEM ) Q2 EBITDA would fall 3.6% if the mine's suspension lasts for one month.
More on Newmont:
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- Analysis: Newmont Corp.: Poor Stock Performance Should Be Addressed
- Stock price return: Down 14.5% YTD, down 34.5% in the past 12 months
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Newmont miners may have funds to extend Mexican strike - Bloomberg