First Majestic Silver (NYSE:AG) stock is falling on Tuesday after the company suspended some of its mining operations.
According to a press release, First Majestic Silver is suspending operations at its Jerritt Canyon mining operation. This comes after the company acquired this location almost two years ago, and mining rates have remained lower than expected.
As a result, First Majestic Silver is seeking to reduce its costs by temporarily shuttering the location. That includes reducing investments and laying off some of the workers at the Jerritt Canyon mine.
Keith Neumeyer, president and CEO of First Majestic Silver, said the following about the news:
“The decision to temporarily suspend mining activities at Jerritt Canyon, which represented approximately 21% of the Company’s 2022 revenue, was driven by our goal to produce profitable ounces across the Company.”
How This Affects AG Stock
Considering the percentage of revenue that Jerritt Canyon contributed to the company in 2022, it makes sense investors wouldn’t react well to the mine closing. Even if it’s only a temporary measure.
That means investors will be keeping an eye on the company’s earnings report this year. It’s possible it will miss prior estimates considering the expected drop in revenue. If investors are lucky, this could work out in the long term with better profits.
AG stock is down 13.6% as of Tuesday morning.
Investors can find more of the latest stock market news below!
We’ve got all of the hottest stock market coverage traders need to know about on Tuesday! That includes what has shares of Qutoutiao (NASDAQ:QTT), Pear Therapeutics (NASDAQ:PEAR), and Cerberus Cyber Sentinel (NASDAQ:CISO) stock moving today. You can learn more on these matters at the links below!
More Tuesday Stock Market News
- Why Is Qutoutiao (QTT) Stock Down 56% Today?
- Why Is Pear Therapeutics (PEAR) Stock Up 21% Today?
- Why Is Cerberus Cyber Sentinel (CISO) Stock Up 170% Today?
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.