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How a ban on Russia's mining giants could shake the metals world

Section: Daily Dispatches

By Jack Farchy
Bloomberg News
Saturday, October 8, 2022

A possible ban on Russian supplies by the London Metal Exchange would be a seismic event for the metals industry, cutting some of the world’s biggest companies off from the main global marketplace.

The exchange has yet to make a decision, but on Thursday launched a formal three-week discussion process on the possibility of banning Russian metal, potentially as soon as next month.

... Dispatch continues below ...


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Guanajuato Silver Production Up 85% from July to August

Company Announcement
Tuesday, October 4, 2022

VANCOUVER,  British Columbia, Canada – Guanajuato Silver Co. Ltd. (TSXV:GSVR; OTCQX:GSVRF) is pleased to provide an operations update highlighting the impact of additional production from the company's recently acquired Topia and San Ignacio mines:

-- 267,525 ounces of silver equivalent (AgEq) produced in August 2022; up 122,864 AgEq ounces or 85% from July, which only included production from El Cubo.

-- Cash costs per AgEq ounce continue to decline at El Cubo with July costs declining to $12.85; costs also remain in-line with expectations Companywide at $15.09 in August.

-- Silver and gold recoveries for August were 88.9% and 85.6% respectively.

The company anticipates ending the year at a run rate of approximately 3.4M AgEq ounces per annum.

James Anderson, chairman and CEO said: "Within one week of closing our latest Mexican mines acquisition we had initiated mining of silver-rich material from San Ignacio and began transporting this material to El Cubo for processing. This rapid restart again highlights our team's ability to swiftly and successfully restart mines and move them toward full production. In addition, production of silver-lead-zinc concentrates from our Topia mine in the Durango state continued uninterrupted through our integration process. Rrefinements at both the Topia mine and plant have been initiated with planned improvements expected in the months ahead." ...

... For the remainder of the announcement:

https://www.gsilver.com/news/2022c/821-guanajuato-silver-production-increases-85-from-july-to-august


In practice, a ban would simply mean that metal from Russia -- which accounts for about 9% of global nickel production, 5% of aluminum and 4% of copper -- could no longer be delivered into any warehouses around the world in the LME network, which store metal used to deliver against futures contracts when they expire.

But the debate, and potential fallout, provide a stark case study of how deeply the LME is intertwined with all corners of the physical metals industry. Despite being a private company owned by Hong Kong Exchanges & Clearing Ltd., the exchange's decisions have far-reaching consequences for the way in which metal is priced and traded globally. ...

... For the remainder of the report:

https://www.bloomberg.com/news/articles/2022-10-08/how-a-ban-on-russia-s-mining-giants-could-shake-the-metals-world

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