(Reuters) - Shares of Canadian miner AuRico Gold Inc AUQ.TO AUQ.N fell 18 percent to a 20-month low, a day after the company cut its production forecast.
AuRico Gold cut its 2012 production forecast on Monday as a high turnover of skilled laborers at its Ocampo mine in northern Mexico weighed on gold and silver output.
“The production results were mildly disappointing, and people don’t like uncertainty in this kind of market,” National Bank Financial analyst Paolo Lostritto said.
“The market is just adjusting to the fact that they’ve missed on the production front.”
The company on Tuesday said Chief Executive René Marion resigned for health reasons and that Chief Financial Officer Scott Perry will replace him.
René Marion, who was appointed CEO in October 2007, will remain with the company as a strategic adviser to the board.
Credit Suisse expects the accelerated development at Ocampo and Young-Davidson mines to cost the company more than expected, the brokerage said in a note dated July 16.
AuRico expects to launch commercial production at its Young-Davidson mine, located about 60 kilometers west of Kirkland Lake in Northern Ontario, in August.
Credit Suisse lowered its price target on the stock to $9 from $11, but maintained its neutral rating.
AuRico Gold stock, one of the top percentage losers on the Toronto Stock Exchange on Tuesday, was down 14 percent at $6.53. It earlier fell to C$6.33.
Reporting by Ankur Banerjee and Shounak Dasgupta in Bangalore; Editing by Sreejiraj Eluvangal and Don Sebastian