Why Gatos Silver Stock Fell Another 15.5% at the Open Today
Shares of Gatos Silver (NYSE: GATO) fell 15.5% at the open of trading on Thursday. That came on top of the stock losing nearly two-thirds of its value at the open yesterday, which itself can be traced back to a news release on Tuesday. Here's a recap of what's going on -- it isn't pretty.
After the close of trading on Tuesday, the silver miner announced that there were errors in a recent report about its main asset, the Los Gatos Project in Mexico. This was not a small mistake, with the company explaining that the reserve estimates for the mine could be 30% to 50% lower than was estimated in the earlier report. It specifically stated that investors should no longer rely on the report, adding that it was still uncertain what the final estimates would be once the information is corrected. That is really bad news, and investors were probably correct in selling.
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Source Fool.com
