Was anyone concerned with the February 15th press release announcing the forming of a consortium between KUYA Silver and a Saudi investment firm?
While describing the partnership as an "exciting project" in "a very favourable jurisdiction to develop mining projects," Mr. David Stein, the president and CEO of KUYA made no mention whatsoever of the Saudi government's abysmal human rights record. Instead, he continues on in the press release about the "strong potential" of the partnership, which may, in the future, "open other opportunities for the Company" with the Kingdom of Saudi Arabia.
Having read the press release, I sent a letter to Mr. Stein on March 10th, expressing my grave concerns regarding the partnership. After 12 days without a response, I regretfully decided to liquidate my entire position in KUYA, despite the company's long-term potential here in Canada.
The letter to Mr. Stein follows below:
"Hello, Mr. Stein.
I just finished reading the February 15th press release, and am wondering out loud what would lead you to want to invest in a country and its leadership with such a horrendous human rights record?
Do you not expect pushback from institutional investors, either now or in the future, with this kind of alliance?
Instead of building a legacy as the CEO of one of the most extraordinary silver mining projects in Canada, will you rather be remembered along the lines of CEO's such as Jim Buckee, who revealed much about his character in stating that "this is the way the world works there and we are not particularly bad guys compared to what others are."
Your future legacy, as well as that of Kuya Silver, is in your hands."
Both Jack Niklaus and Tiger Woods turned down substantial offers from the Saudis to join the new LIV golf league, with Woods reportedly turning down a contract worth an estimated $700-800 million. According to Greg Norman, CEO of LIV golf in August, 2022, the pair turned down the Saudi offer so as to preserve their "generational legacies."
So each of us, as investors, also have to decide whether to put principles before profit, or to sell out for short-term gain while turning our backs on those who are left to fend for themselves.