Gatos Silver (NYSE:GATO) stock is on the move Wednesday with a couple of issues causing the shares to plummet today.
The biggest news today is a correction to a previous report from the company. This has it reducing its estimate for how much mineral reserve is remaining at the Cerro Los Gatos mine. While it doesn’t have a final number, a preliminary estimate claims the mineral reserve at the mine could be between 30% to 50% lower after depletion.
Gatos Silver says that it’s working with engineers to get finer details on how much metal is left at the mine. The company expects to have this sometime in the second half of the year.
Dale Andres, president of Gatos Silver, said the following about the situation dragging GATO stock down today.
“While we are disappointed by the preliminary results of the reconciliation work, we are encouraged by ongoing excellent performance at the Cerro Los Gatos operation, particularly in the challenging environment of the global pandemic. We continue to achieve record production while maintaining strong performance in the areas of safety, environmental stewardship, social engagement and continuing to shift our exploration focus to the Los Gatos District.”
In addition to the reconciliation news, GATO stock is also getting hit with downgrades today. That includes a double downgrade from RBC Capital that drops it from outperform to underperform. CIB also dropped the stock from an outperform rating to a neutral rating this morning.
GATO stock is falling 66% as of Wednesday morning.
Investors seeking more stock market news today are in the right place!
We’ve got them covered with the latest stock coverage they need to know for Wednesday. That includes the latest on AMC Entertainment (NYSE:AMC) and Vinco Ventures (NASDAQ:BBIG), as well as this morning’s pre-market stock movers. You can find all of that at the links below!
More Wednesday Stock Market News
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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