Constitutional Court Upholds Suspension Of Tahoe’s Mining License… Shares Fall 20%

According to unconfirmed sources, Tahoe Resources (TAHO) has learned that the Guatemalan Constitutional Court issued a decision yesterday to uphold the lower court’s preliminary ruling to suspend its mining license at Tahoe’s Escobal Mine. This new ruling caused Tahoe’s shares to sell off more than 20% during trading today. 

I first wrote about the trouble at Tahoe Resources Escobal Mine in my article, WORLD’S 2ND LARGEST SILVER MINE SHUT DOWN: Implications For Company & Market:

First, after the Guatemalan Supreme Court suspended operations at Escobal, Tahoe’s stock price took a real beating falling 33% that day.In the past week, Tahoe’s stock price decline 40%:

A lot of investors were caught by surprise as Tahoe Resources has been making a lot of money from its mines, especially from its Escobal Silver Mine in Guatemala.For example, in 2016 Tahoe Resources reported profits of $118 million on revenue of $784 million. That is a stunning 15% margin of profit… and the majority of that profit was from the Escobal Mine.

Second, the rich profits from the Escobal Mine came at a cost.And the cost was in the way of “serious human rights violations through its operations,” stated by several sources. Unfortunately, many investors that follow the Mainstream financial media do not understand that the Escobal Mine has been, and continues to be, a subject of human rights abuse and violations from day one.

When the Guatemalan lower court first temporarily suspended the mining license at Tahoe’s Escobal Mine back in July, the shares of the company fell 40%. After the ruling by the Guatemalan Constitutional Court to uphold the lower courts decision yesterday to suspend Tahoe’s Escobal mining license, the shares fell another 20% today:

When I first wrote about the suspension of Tahoe’s Escobal mining license, I received some push-back from those that were invested in the company. While I can understand the frustration, I try to put out as much objective data as I can about the mining industry. I wrote about Tahoe’s problems with its Escobal Mine back in 2014.