Cormark downgrades select miners as Mexican operations suspended

Excellon Resources

06/04/2020 14:46

** Brokerage Cormark Securities downgrades a few miners with
operations in Mexico after the government there declared a
health emergency and ordered suspension of non-essential
activities
    ** Downgrades First Majestic Silver  FR.TO , Torex Gold
 TXG.TO , Agnico Eagle Mines  AEM.TO  to "market perform" from
"buy" as the order affects all mining operations in Mexico
    ** Brokerage says FR stock will return to being the go-to
silver producer in the space once operations resume, but at the
current time the risk outweighs the reward
    ** Says the Mexican mine suspension adds to the suspension
in Quebec and reduced operating levels in Nunavut for Agnico,
adding that near-term production risk is significant
    ** Brokerage says that while Torex's valuation is
attractive, the risk outweighs the reward
    ** However, maintains "buy" on Excellon Resources  EXN.TO 
whose entire current silver production comes from Mexico, saying
shares are exceptionally undervalued
    ** Mexico issued a decree that all non-essential businesses
in the country to be suspended until April 30, and in the
subsequent days after the decree was issued, producers in Mexico
began to ramp down operations - brokerage

 (Reporting by Arundhati Sarkar in Bengaluru)
 ((Arundhati.Sarkar@thomsonreuters.com; +1 646 223 8780 Ext:
2776; Reuters Messaging:
arundhati.sarkar.thomsonreuters.com@reuters.net))