GMG Global: announced that it has temporarily stopped its plantation and processing operations in Ivory Coast because of the imposition of a countrywide curfew, and the closure of all means of transportation.
The co has been “unable to export its products, effective from the weekend”…
GMG is the 2nd-largest buyer of rubber from small farmers in Ivory Coast, Africa’s top exporter of the commodity, and operates a factory with processing capacity of 36k mt/yr. GMG also has larger processing facilities in Cameroon (50k mt/yr) and Kalimantan (55k mt/yr)…
Expect some near term share price weakness in GMG, but note that the situation in Ivory Coast is dynamic and can change quickly. With the fighting in Ivory Coast’s capital now in its 5th day, and UN-backed Ouattara appearing to have the upper ground in the conflict, a conclusion could come about at anytime. Sentiment may improve rapidly once the fighting ends, and business operations resume.
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