Geezuz... I see why you have posed the question about upcoming elections! My ignorance of the political situation had me blindly believing Madagascar had stable government. A bit of research has enveiled a process that is convoluted due to the number of candidates and a history of unrest that makes our recent political turmoil look tame, if not admiral.
The fact that the country's poverty rate apparently stands at almost 92%, one would think any incoming president would encourage investment not hinder it by changing the mining royalty rate. There is no accounting for greed when corrupt leaders rule a land. The elections, though, are also not until well after the expected Quarterly news due at the end of this month. The elections sound like they may even drag out through a series of rounds into December. That is not to say that some people won't take profit in light of the elections... whichever way they go.
I think the pullback in the shareprice has simply been due to lack of news, investor impatience and the recent correction/s in the broader market spooking many. I don't believe the upcoming elections would be impacting the shareprice at this point. Correct me, anyone, if I am wrong. Difficult one to quantify, but perhaps there are examples of other companies that have experienced similar shareprice pullbacks due to their location in poverty-stricken countries and imminent elections.
BSM Price at posting:
2.4¢ Sentiment: Buy Disclosure: Held
