- After increasing over 100% since late December 2020, GATO has plummeted 35-40% over the last two weeks.
- GATO has been such a strong performer this year because it was drastically undervalued and was getting more in line with its peers.
- The recent drop is because of a public offering which resulted in 15% dilution, yet allowed GATO to repay all of its debt.
- I don't believe investors are aware of the potential sizable drop in AISC that could've occurred in Q2.
- I reduced exposure in GATO about a month ago when it was around $18, and I've used this sell-off to buy back what I sold.
For further details see:
Gatos Silver: The Plunge In The Stock Is Overdone, And I'm Buying