Hi BinVery hard to know the reasons why Charbella but I expect obvious reasons being contributing factors for the short covering ie. that the ML issue is closer to being resolved due to changes withIn the mining ministry to be made soon (this week’s face to face meeting?) together with final approval for the financing of SEZ zones.
I wonder if the driver of this shift in sentiment is simply economic pragmatism based at least partly on AVZ's decision to go to the International Chamber of Commerce (ICC) to arbitrate on ownership of the Manono project. Since the ICC cases are expected to take months to prepare and finalise, shorters are reluctant to have their capital and paper profits further tied up during this lengthy process. In other words, it's not so much a vote of confidence in AVZ, but simply the need to have their capital available and continuously working for them. It's not working while tied up in a suspended stock.
Finally, there is also a very small risk that AVZ could eventually be delisted if things go pear-shaped. Although only a remote possibility, it cannot be ignored because while AVZ remains suspended the risk of delisting increases incrementally. If that happens, everyone loses, including the big trading houses that have both long and short positions in play.
Just thinking out aloud.
Cheers
F
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