GLNCY - Eramet: New Caledonian Strikes In Perspective

Back in December, we highlighted the opportunity in Eramet (ERA:FP, OTC:ERMAF, OTCPK:ERMAY), a French nickel and manganese miner whose shares had been beaten down excessively since the summer. The rebound that followed was spectacular, with the shares gaining about 35% within a few weeks as sentiment around raw materials improved. However, Eramet's stock again sold off sharply last week:

Euronext-Paris listed shares (ERA:FP), in EUR. Source: Yahoo Finance.

The reaction was due in part to a negative news-flow out of New Caledonia, where a lengthy strike could have far-reaching consequences for Eramet's local