Uncertainity23 Sep 2017 00:29
I have got nothing new to offer. We are all certain that Petra's SP will go north, once the strike is over and problem at Williamson mine is resolved one way or the other. Williamson mine makes up only 3% of Petra's portfolio. If Tanzania government nationalise the mine without compensating, (there is a precedent. In 1972 Tanzania nationalise citizen's surplus properties without compensating) Petra will loose 3% of its portfolio. It is not a big deal. Petra SP has already lost its SP value by 2/3rd.
It is very tempting to put my toe in it. The following factors prevent me from doing so.Firstly nobody knows how long the strike will last and secondly how long it will take Tanzania government to resolve the matter. In the meantime the SP will keep on drifting.