July 6, 2017 / 3:09 PM / 3 months ago

Tahoe's U.S. shares hit record low on Guatemala mine suspension

July 6 (Reuters) - U.S.-listed shares of miner Tahoe Resources fell as much as 38 percent to a record low on Thursday, a day after Guatemala temporarily suspended the company’s Escobal mining license, citing violation of indigenous people’s rights.

Shares of the company fell to $5.12 on the New York Stock Exchange on Thursday.

The Supreme Court of Guatemala issued a provisional decision suspending the Escobal mining license after an anti-mining organization appealed to the court against the country’s Ministry of Energy and Mines.

The appeal alleges that the ministry did not consult with the Xinca indigenous people before handing over the Escobal mining license to Tahoe’s Guatemalan unit Minera San Rafael.

Escobal is Tahoe’s flagship mine and one of the world’s largest silver mines.

Canadian shares of Tahoe fell as much as 39 percent to a 7-yr low, its third straight day of losses.

Tahoe said due to suspension of the mine, 2017 silver production would be deferred by 5.1 million ounces and said it could no longer confirm previously issued 2017 forecast.

Multiple brokerages lowered their price targets on Tahoe’s stock, with at least 3 downgrading their rating on Thursday.

Up to Wednesday’s close, the miner’s U.S.-listed shares had fallen nearly 12 percent this year, while its Toronto-listed stock fell 15 percent. (Reporting by John Benny in Bengaluru; Editing by Shounak Dasgupta)

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