Lost Money in Gatos Silver Inc.?
Shares of Gatos Silver, Inc. dropped 70% following the company's disclosure that it had identified errors in a technical report, and that its existing resource model includes overestimations. The company said that it now expects a potential reduction of the metal content of its mineral reserve, and that its 2020 technical report "cannot be relied upon." Gibbs Law Group is investigating a potential Gatos Silver Class Action Lawsuit on behalf of investors who lost money in Gatos Silver, Inc. (NYSE: GATO).
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
On Tuesday, January 25, 2022, silver mining company Gatos Silver divulged that it had identified errors in a previously issued technical report titled "Los Gatos Project, Chihuahua, Mexico," and that it found "indications that there is an overestimationin the existing resource model." The company said that it "now estimates a potential reduction of the metal content of CLG's mineral reserve ranging from 30% to 50% of the metal content remaining after depletion." Gatos Silver also warned that the "mineral resource and reserve estimates in the 2020 Technical Report should not be relied upon."
Gatos Silver's press release states that the company is currently working with independent engineering consultants to "better understand the magnitude of the overestimation, including conducting a detailed reconciliation of production to previous models and reserve calculation estimates," but anticipates that this reconciliation work will not be completed until the second half of 2022.
Following the news of the error-plagued Technical Report, Gatos Silver's stock plunged as much as 70% on Wednesday, January 26, 2022, causing significant harm to investors.
What Should Gatos Silver Investors Do?
If you invested in Gatos Silver, visit our website, or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether Gatos Silver, Inc. has violated federal securities laws.
About Gibbs Law Group
Gibbs Law Group represents individual and institutional investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world's largest corporations, and our attorneys have received numerous honors for their work, including "Best Lawyers in America," "Top Plaintiff Lawyers in California," "California Lawyer Attorney of the Year," "Top Class Action Attorneys Under 40," "Consumer Protection MVP," and "Top Cybersecurity/ Privacy Attorneys Under 40."
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