Endeavour Silver Corp T.EDR

RE:RE:Risk is now adding up

[Dragonflyinvest]

The important point of future tailing dams, etc. failing is that they were engineered with old weather information.  Who designs a structure to withstand 10 times the average precipitation?  Certainly not the Mayan.
 
“A 1,000 year old, 49-foot pyramid in the state of Michoacn, Mexico, partially collapsed due to intense rainfall on the night of July 29. According to Science Alert, the ancient stone pyramid was one of the best-preserved monuments of the Michoacn kingdom civilization, and extreme weather events, intensified by climate change, are blamed for its damage.”

Mexican pyramid collapse highlights climate change threats (msn.com)
 
There seem to be questions about Victoria’s operation but tailing dams/leach fields constructed under today’s accepted engineering standards may not withstand future extreme weather events.  So, what can be done to reduce this new risk to mining operations?  First, mining companies should evaluate the degree of risk AT THEIR SPECIFIC GEOGRAPHICAL LOCATION and take measures to minimize the spread of waste material.  Investors need to be aware of developing weather and storm threats to their company’s operations. 

It is not possible to predict all the complex and complicated ways that extreme weather can impact a region, but an awareness of this threat will probably be instructive of what to guard against.  For example, if you see a super cyclone headed for Mozambique, (characteristic of the La Nina phase that we are now entering) it might be a good idea to reduce your southern African miners by 50%, and if the storm fizzles out and the stock goes up, then when you replace those shares, the additional cost is simply a cost of doing business i.e. an “insurance premium”.