Allied Gold 17% Lower as Traders Fret New Mine Ownership Rules in Papua New Guinea

Allied Gold Mining (ALD.TO) is down sharply today, with shares sliding 17% on concern the government in Papua New Guinea will soon turn over mines ownership to individual landowners.

Allied stock, which also trades on the London stock exchange, is down about 7% with about 45 minutes left in the LSE session after falling 4.5% on Friday.

At least one analyst, however, believes those fears are overblown, with the Financial Times quoting a recent note from Oriel Securities reiterating its Buy recommendation, explaining that the proposed ownership rules would "relate only to new projects, whereas existing mines, such as (Allied's) Simberi mine, were grandfathered."

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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