NEW YORK (TheStreet) -- Shares of Allied Nevada Gold (ANV) are tanking, sharply down 8.97% to $1.42 in late morning trading Friday, after the company lowered its 2014 full year metal sales to a range of 210,000 to 220,000 ounces of gold and 1.8 million to 1.9 million ounces of silver, lower than its previously forecast range of 220,000 to 230,000 ounces of gold and 1.9 million to 2 million ounces of silver.
The company announced this morning that in late October and November, it encountered a significant amount of acid leach material in its planned mining areas that had an adverse effect on drilling and processing capabilities.
Due to the fine and chalky acid leach material, the available ore to mine was reduced and the company was forced to slow drilling.
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Reno, NV-based Allied Nevada is a gold and silver producer focused on mining, development, and exploration of properties.
Separately, TheStreet Ratings team rates ALLIED NEVADA GOLD CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALLIED NEVADA GOLD CORP (ANV) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and generally disappointing historical performance in the stock itself."