RE:Shows the power of fear
It is ridiculous what happened in the market this morning. The only actual information in the company's report that was at all negative, was that the local government wants a bigger piece of the pie from the West African operations. It is possible that a few large investors are particularly skittish after what happend to Eldorado in Greece, but the situations are hardly comparable from either a political or an operational perspective. The Mauritanian government is not much influenced by philosophical anti-mining sentiment, they just want more money. There is no evident desire to kill the goose that laid the golden egg, and because there is an operational track record, no reason for pie-in-the-sky expectations of future profitability by the politicians. If they are not fools, then they should be able to negotiate a deal that allows both the company and themselves to survive. All in all, the stock price should have gone up as a result of the company's reporting. Just goes to show that stock markets run more on emotion than logic.