After acquiring the Jerritt Canyon Gold Mine nearly two years ago, First Majestic Silver (NYSE: AG), a leading precious metals producer, has decided that the asset is not proving as profitable as management had first expected. Consequently, the company has decided to temporarily suspend mining operations at Jerritt Canyon.  

Investors are not happy with the news, and as of 10:50 a.m ET, shares of First Majestic Silver have fallen 24.3%.

After the market closed yesterday, First Majestic Silver announced that effective immediately, it's temporarily suspending mining activity and reducing the workforce at Jerritt Canyon. While the company had aspired to achieve a feed rate of 3,000 metric tons per day at the processing plant -- a rate that would help the company generate free cash flow at the asset -- the company has consistently faced challenges in meeting this target.

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Source Fool.com