South32 have announced this morning that a fire at their Cannington mine will lead to lost production:
Cannington Production and guidance
Payable silver production (koz)New FY17e 16,500
Prior FY17e19,050
Payable lead production (kt)
New FY17e 135Prior FY17e 163
Payable zinc production (kt)
New FY17e 70Prior FY17e 80
A quick, back of the envelope calculation gives me a figure of around $150m reduction in revenue, or around 2% of FY17 forecast. There is no indication of the cost of remediation work, and there is presumably a risk that it will take longer than estimated to complete.
Interesting to see what the share price does today. I'm minded to hold and ride it out.
