We are investigating whether Gatos Silver, Inc. (NYSE:GATO) (“Gatos”) has violated federal securities laws. If you suffered losses as a result of today’s drop in the price of GATO, and have questions about your legal rights, please contact us using the form below to discuss your options at no charge.
Why is there an investigation?
On January 25, 2022, after the market closed, Gatos disclosed errors in a technical report that resulted in overestimation of the mineral reserves at its Cerro Los Gatos (“CLG”) mine. Discovery of the errors resulted in a substantial reduction in estimates of the CLG mine’s mineral reserves ranging from 30% to 50%. Gatos said it presently cannot accurately quantify the exact magnitude of the reduction, and the mineral reserve estimates in the technical report should not be relied upon.
This disclosure calls into question the value of the CLG mine, which is the company’s flagship asset.
In reaction to the disclosure, the price of GATO stock dropped nearly 70% as of 1:00 PM Eastern on January 26, 2022.