Polymetals Resources slumps -25% as works resume after midweek mine deaths

Polymetals Resources (ASX:POL) will resume operations at its Endeavour mine after the deaths of two workers earlier this week, believed to have been caused by a malfunction with explosives 700 metres underground.

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“While respecting the grief personnel are feeling, the company is planning to recommence operations in a staged manner,” Polymetals wrote on Friday.

“Exploration drilling and concentrate transport is expected to recommence next week, as well as completion of planned statutory electrical works,” a spokesperson added. The company also confirmed investigations are ongoing.

However, some HotCopper users believed that tragedy put aside, what this all means could be lower-than-expected production in the near-term future, perhaps partially explaining the -25% drop in shares intraday.

To be fair, Polymetals didn’t point to this outcome, and in the company’s Friday disclosure, POL CEO Dave Sproule extended his condolences and wishes to the families of those affected. Patrick McMullen, 59, and Holly Clarke, 24, were the two workers who lost their lives earlier this week.

“The company is providing every possible support to the families of those who were lost and all those impacted as we work through this devastating period.”

When assessing market reaction to this week’s events, one mightn’t need to look further than the company’s share price line chart. Over the last week, the Australian company has lost up to a quarter of its value; the same metric is true for month-on-month returns; year-to-date performance is up +20%.

POL last traded at 94.5cps.

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