Gold miners begin to stop production

The falling prices for gold forced Golden Minerals to announce the stop of their activities at the Velardña mine, Mexico), in order to maintain assets until gold and silver show a wealthy cost for profitable activities. This is stated in the company's message.

Golden Minerals workers were warned about the decision to suspend the production of gold on Friday June 21.

"The company presents the mine and production capacities in order to ensure their launch and continue activities when the cost of metals provides positive profit," the report said.

The company became one of the first victims of high expert expectations. In February last year, Golden Minerals counted on the increase in the cost of gold ingreds up to $ 1600 per troika ounce. At least this was said in the press releases for shareholders distributed to her. However, already in May 2013, the company forecast 5 million dollars of losses from activities in the remaining three quarters of 2013 with a cost of gold of $ 1,500 per ounce.

Meanwhile, the prices of precious metals continued to fall and are today much lower than the predicted level.

About 500 jobs as a result of suspension of activities will be eliminated. Today, the Golden Minerals leadership is negotiating with the trade unions on specific conditions on weekends. The company plans to maintain the main core of 50-60 employees to ensure the launch of capacities and ensure their safety in the long term.

The headquarters of the Golden Minerals apartment is located in Delaware (USA), the company's securities are officially quoted on the Toronto and New York stock exchanges.

Golden Minerals owns Velardo's gold-descending mine in Durango (Mexico), El Quevar silver mines in the province of Salta in the north-west of Argentina, and other enterprises and mines located within the limits or near the historical production of precious metals in the regions of Mexico and South America.