The Predictive Discovery Ltd (ASX: PDI) share price has jumped out of the starting blocks today with the company’s shares now trading at 19.5 cents apiece.
The Guinea-based miner has clawed back 15% of the losses it gave away yesterday after a horrendous start to the week. The company’s share price had tanked 28% before today’s open.
Why is the Predictive Discovery share price up 15%?
While there’s been no market sensitive information for the company today, Predictive Discovery’s shares have certainly rebounded from yesterday’s sell-off.
Then, its shares crashed from 23.5 cents to close at 17 cents yesterday after coming out of a requested trading halt a day earlier.
Specifically, the sell-off came after the company released an update on its Bankan Project in Guinea.
According to Predictive, it was made aware of a media report that calls into question the legality of its mining operations in the West African nation.
The company’s statement notes the media report claims that two of the company’s permits, the Kaniko and Saman permits, lie within the outer zone of the Upper Niger National Park.
This is apparently a restricted area for mining activities. However, the company notes there are certain exemptions that can be granted through the Guinean ministerial cabinet.
As such, Predictive’s managing director Paul Roberts said the company is working with Guinean authorities to ensure it is fulfilling its environmental responsibilities.
Despite this, investors were spooked yesterday and left the Predictive Discovery party fairly quickly after the company’s update.
Predictive Discovery has since ensured all of its gold mining operations remain compliant. The company also said it has been in regular discussions with the Guinean mining regulator on its ESG planning.
With this news, investors appear to have regained confidence in Predictive’s shares today.
Nonetheless, the Predictive Discovery share price has slipped 25% into the red this past wee, after closing at its 5-year high of 26 cents on 5 October.
Predictive Discovery share price snapshot
Despite the turbulence this week, the Predictive Discovery share price has climbed around 65% in the last month and is up 211% this year to date.
This extends its gain in the last 12 months to 201%, well ahead of the S&P/ASX 200 Index (ASX: XJO)’s return of around 25% in this time.
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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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