Why Tahoe Resources Inc. Stock Skyrocketed Today
Shares of Tahoe Resources Inc. (NYSE: TAHO) skyrocketed 33.4% on Monday, after the precious-metals mining company announced that the Guatemalan Supreme Court has decided to reinstate its Escobal mining license.
For perspective, the ruling reverses an unfavorable preliminary decision to suspend the license, which came in response to anti-mining organization CALAS and its allegation that the country's Ministry of Energy and Mines (MEM) had unlawfully awarded it to Tahoe's Guatemalan subsidiary, Minera San Rafael. More specifically, CALAS claimed that MEM violated the Xinca indigenous people's right of consultation before issuing the license.
More recently, late last month Tahoe stock also plunged after the company warned that its latest appeal, which would have enabled it to continue operations at the mine while the situation was resolved in court, was expected to be denied.
Source: Fool.com
