AVZ admitted in today's announcement that there are legal disputes to it's ownership claim of Manono. Whether this challenge is legitimate or not is besides the point: DRC is one of the most corrupt countries in the world and just the mention of this will spook some investors.
This legal challenge is clearly material to the SP, yet wasn't announced to the market when known. It appears worse IMO mentioning it as an afterthought, and provides credibility to many of the claims of dispute circulating on other social media. Management could have handled this a whole lot better IMO when initially known.
From AFR:
To add to today's SP movement - the whole market knew the ML was 'imminent' and it's quite normal to 'buy the rumour, sell the news'. This is not such a big deal - the ownership dispute is significant IMO.
GLTAH
AVZ Price at posting:
80.0¢ Sentiment: None Disclosure: Not Held
