Absolutely nothing has been happening (publicly) on the Ashanti front for the last 10 days or so.
Before that Asahnti repriced the warrants from $4.75 to $3 essentially putting a $3 ceiling on the stock price for the foreseeable future. Ashanti got and has drawn on a $100 MM loan to complete Geita. The terms of the loan strongly favor Ashanti selling 1/2 of Geita before the fall. They have announced new members and a restructuring of the board of directors.
Volume has been down and the price drifts down. My take is that most investors have given up and either have sold out or have decided to wait and see and will come back to the stock in a few months.
In Ghana the stock exchange has dried up. Total daily volume in all stocks runs about US$3,000 (not a typo!). The cedi (Ghanaian) currency is dropping against the dollar. About 3500 cedi = 1 US$ A year ago it was about 2400 cedi = 1 US$.
IMO the repricing of the warrants took shareholder interest out of this stock. This board has drifted onto other topics - I think while stockholders wait for something to discuss regarding Ashanti. I believe that stockholders are disgusted with the outcome of events and have moved on to other opportunities.
The price of gold has calmed down and is in a general downward slide - $293 / oz.
All - in - all not a pretty picture for Ashanti and the stock price drifts downward as a reflection.
It just might be possible that no amount of glue could repair this company.
Could hostiles be accumulating their 5% stakes? Or are rules different in Africa?
Do wish you guys would settle that Geita sale/jv already. Big help for the sector, once it's done.
Handy, thank you for greeting.
Maddie, only reason I don't have some Ashanti is portfolio diversity. Feel satisfied with my picks in the sector and no need to switch. But I WOULD pick up some Ashanti otherwise.
Re your comment re CBJ: I have no need whatsoever to pump it or tout it. It's not for the impatient. But for the very patient, almost sure big profits. Caisse, its biggest holder, still - after averaging down - has a par over 5, I've heard. (Not an insider, so can't confirm exact par.) Insiders also have a big chunk. My par is way, way, way below theirs - so I feel I'm in very good shape. I'll wait YEARS if necessary, for a quadruple, quintuple or more from my par.