When uncertainties such as the Panama situation arise, stocks tend to take a hit and then 'drift' on uncertainty and general investor wariness. In such scenarios, while the news is likely mostly priced in (to both FNV and FM) we have found that investors tend to be cautious after such events for a period of time. Essentially, since there was 'a problem' at one asset, they wonder if there are 'other problems' in the portfolio. Of course, a problem in Panama has no real correlation to other assets elsewhere, but investors do not act like this, believing more in the cockroach theory--i.e. if there is one, there is more. Thus, we think FNV buyers have some time, barring any large rally in the precious metals sector. So, while it may not go 'much' lower, it may not do much, either. Thus, we would be fine with a tax loss sale and a reconsider in 2024.
5i Research Answer: