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What: Shares of gold and silver miner Allied Nevada Gold (NASDAQOTH:ANVGQ) dropped 23% today after reporting earnings.
So what: Second-quarter revenue rose 75% from a year ago to $59.0 million and net income was $4.2 million, or $0.04 per share. But analysts expected a far more robust $81.4 million in revenue and $0.08 per share in earnings, which caused the big drop today.
Now what: Management also announced the delay of construction of a mill at Hycroft until it can study the plan more. Low gold and silver prices are affecting revenue and the return on investment has fallen along with prices. I don't think gold prices are going to recover because the economy is slowly improving, which will keep me out of this miner, particularly when considering the low profit, even at last quarter's prices.
Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.