Fortuna's Sudden Change of Fortune
While launching into a multi-year growth spurt with the addition of the San Jose silver mine in Oaxaca, Mexico, Fortuna launched its listing on the New York Stock Exchange last September. Fortuna marked the achievement by ringing the opening bell on January 17, 2011. Photograph by Christopher Barker.
"While Fortuna's super-charged production growth profile remains fully intact, a meaningful bout of cost escalation became the primary trigger this week for a brutal share price drop. From a close of $6.14 on the eve of Fortuna's earnings release, the stock tumbled 30% to close at $4.28 Thursday as analysts revealed sharply reduced price targets and near-term earnings estimates. After this unforeseen turn of events, suddenly my No. 2 pick for silver in 2012 faces a tough climb just to reclaim its starting position. Let's take a closer look at what caused the carnage."