Why Gold Resource Stock Is Tumbling Today
Shares of Gold Resource (NYSEMKT: GORO) declined by more than 10% by 2:30 p.m. EDT on Tuesday. Weighing on the gold mining stock were its planned spinoff and weaker gold prices.
Yesterday, Gold Resource unveiled plans to spin off its Nevada mining unit to shareholders as a separate publicly traded company. That move would enable the legacy Gold Resource to continue focusing on operating its growing Oaxaca mining unit in Mexico. Meanwhile, the new spin-off would focus on the cash-flowing Nevada assets, allowing it to pay a higher-yielding dividend.
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Source Fool.com
