Here's Why Tahoe Resources Stock Fell as Much as 22.1% Today
Shares of precious metals miner Tahoe Resources (NYSE: TAHO) dropped over 22% today after the company provided an update about its Escobal mine in Guatemala. As of 2:27 p.m. EDT, the stock was down 17.7%.
To recap, in May a non-governmental organization (NGO) asserted that Guatemala's Ministry of Energy and Mines unlawfully awarded an operating license for the mine to the company's subsidiary in the country. The challenge worked its way up the court system until the Supreme Court of Guatemala agreed with the NGO and suspended the license until the situation was resolved in court.
Today's drop is in response to the newest twist. The company alerted shareholders that its latest appeal to the court -- that would have allowed operations at Escobal to continue until the situation was resolved in court -- is expected to be denied, although the information is from unconfirmed sources. An official hearing is scheduled for Aug. 28, which is when the news will conceivably be confirmed.
Source: Fool.com
