Shared priced closed unexpectedly low today. Took this opportunity to buy on the Toronto market. Even if the court case isn't resolved quickly the scheduled events over the coming weeks (Annual Report on March 23 and Q1 Prelims on Apr 9) should have the share price rising. Surely the sp will never go down to November 2014 levels!
Is an SCC ruling necessary on the new investment law? If so than it seems impossible to have one in place before their conference. What's the point in hosting potential investors w/o the new investment law in place?
Centamin and the Madinaty case are vastly different. Centamins original "deal" was better than the international standard for Egypt. The country has also managed to extract "advance payments" (maybe bribes) on profit sharing. In no way should this sort of judgement be accepted by Centamin.
Note that the share price has increased since the adjournment was announced. Must indicate that the market thinks this is a good result. The timing of the next hearing (just before Ramadan starts on June 18) indicates that the court probably isn't planning to make a ruling this year.
I'm preparing myself to be disappointed with the court case and investment law. IMO it seems the Sisi gov't will take the easy way out. Introduce a weaker investment law that's easy to enact and continue the endless round of cc dates w/o a decision on the Centamin case.
I believe mac69 is correct in that the new investment law will wait for to be ratified / amended by an elected parliament later this spring. Arham Online has an editorial piece on this [link]
Whoa - let's not get carried away with this retracement. RSI is now down and we could return to 72p on Monday and not be overbought.
Gold and Centamin have both had their RSI values over 70 for the last 4 days. Looking back as far as 2012, Centamin or gold, have never remained overbought for more than 8 days. We're due for an interruption of the steady move upwards.
If gold can break thru $1300 than Centamin should break 70p in the short term. I've been waiting since 2012 for resolution of the cc so I'm reluctant to predict anything there.
Gold should close above the 1240 (USD) resistance that it has been testing the last 2 days. Next resistance is at 1256.40 which is stronger and will most likely hold for today at least. If sp doesn't respond I guess it indicates investors don't believe the gold price will continue higher.