With less than an hour to go before the close of play on this cloudy and slightly chilly Thursday, this is how Continental Gold (CNL.to) is trading today…
…and the weakness marked to GDXJ is presumably a reaction to the news out of Colombia yesterday of that Constitutional Court ruling, so after teasing you this morning let’s be clear about this once and for all. It doesn’t matter what the uninformed Chicken Little end of the mining scream-o-sphere are telling you, it doesn’t even matter about my personal opinion of Continental Gold (CNL.to) or Mister Honesty himself, Ari Sussman. CNL is not meaningfully affected by yesterday’s ruling. As I wrote to A. Person earlier…
“The ruling was a ratification of what we already know, not
a new piece of law. It was called for by the governor of Huila region
who wants to stop a couple of hydroelectric plants from being built and
the government was trying to ignore him.”
…so now you know. Yes it may affect other mining projects with unfriendly local governments, but Buriticá and Antioquia are among the vast majority of locations in Colombia where there’s no change.