Q: Another tough day for IVN..
what semic event occurred?..does it mean the mine could collapse, flood out or worse?..how low could this stock get? Many thanks
what semic event occurred?..does it mean the mine could collapse, flood out or worse?..how low could this stock get? Many thanks
5i Research Answer:
Mine flooding is actually fairly common, but each case is different and it is always hard to predict outcomes nor degree of problems. IVN notes that water levels have stabilized and de-watering will begin in Q3. But...it did lower production guidance, and uncertainty of course is never good for stocks. But it has already re-started production on the Western side of the mine. The stock could move lower on more bad news, or a total collapse. But analysts do not really expect this. Still, investors will be cautious, and we would not expect the stock to stage a rally until it is clear its geological issues are solved. The stock bounced off $8.76 yesterday, but could certainly go lower than that on more negative news.