Why Pan American Silver Stock Sank 12% on Aug. 11
Silver and gold miner Pan American Silver (NASDAQ: PAAS) fell as much as 12% on Aug. 11. The stock started the day lower and continued to slide until roughly 12 p.m. EDT, when it was down around 11%. It recovered a few percentage points before starting to fall anew in the early afternoon, resting at around a 12% loss at 2 p.m. What soured investors on the shares was most likely an update from Deutsche Bank.
CEO Michael Steinmann started Pan American Silver's Aug. 6 second-quarter earnings conference call by explaining that "the global COVID-19 pandemic had a significant impact on our operations over the second quarter." Higher precious metals prices helped soften the blow, allowing the company to earn $0.10 per share in the quarter, up from $0.09 in the second quarter of 2019. However, the impact of mine closures resulted in Pan American Silver trimming its full year 2020 silver production guidance by around 40% with gold production pegged to be lower by 15%. With precious metals prices high today, that's not a great outcome.
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Source Fool.com
