Orla Mining (ORLA) said Monday an "illegal" work stoppage and blockade by its unionized workers is underway at the Camino Rojo Mine in Zacatecas, Mexico.
"Operations at the mine have been temporarily halted," the firm said, adding that the stoppage has not followed the procedures under Mexican law, including the filing of a strike notice.
The stoppage and blockade stemmed from disputes over bonus and profit-sharing payments, Orla said, adding that it is in talks with the union and authorities, with a meeting set for June 2.
The company said it will provide an update after assessing any potential impact on its full-year production guidance.
Shares were down more than 7% in midday trading.
Price: $12.40, Change: $-1.02, Percent Change: -7.57%