Market Report: African Minerals the latest company to feel the effects of a region in turmoil
Wednesday 06 August 2014
What on paper might look like a great business opportunity – iron ore just waiting to be dug out of the ground or millions of barrels of untapped oil – can often prove to be trickier in practice.
Politics, war and pestilence have all been getting in the way of business recently and the latest company to feel the meddling hand of circumstance on the tiller is African Minerals, the Aim-listed miner digging up iron in Sierra Leone.
The company’s share price has been falling steadily over the last week, as the clamour around the Ebola outbreak in West Africa has grown louder. Yesterday African Minerals suffered its biggest sell-off yet, tumbling 11p to 47p, as fears about its Tonkolili mine came to a head. The Sierra Leone mine is at the epicentre of the current outbreak. To make matters worse, African Minerals has already been struggling with falling iron prices.
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