Eric Sprott's comment on Bear Creek
TGR: Peru is one of the best mining addresses on the planet, but we've seen a lot of decrease in share prices in some of the Peruvian mining equities. You have some interests there, too, that have been specifically affected by government action. Could you comment on that?
ES: Bear Creek Mining Corp. (TSX.V:BCM) has been one of my favorites because of its two ore bodies. It's unfortunate the governments have made the decisions they've made. We see this in different places, not just in the less-developed countries, where governments come in and change the rules. If it's not Ecuador, it's Peru. If it's not Peru, it's Bolivia. Somebody's always doing something.
TGR: In the case of Peru, though, this was an injunction signed by outgoing President Alan Garcia that halted Bear Creek's Santa Ana silver project specifically.
ES: You take those risks with any country. People always ask if I think the U.S. government will confiscate gold. You hear chatter about the U.S. government nationalizing the gold mines someday. If you want egregiousness, that's almost as bad as Ollanta Humala (Peru's new president) declaring that one property is not going to continue to be owned by somebody. It could happen anywhere. That's one of the problems you face when you're an investor; you don't know exactly what the political flavor is.
If I were a betting man, I'd bet the Santa Ana mine comes into production within the next 10 years. The stock market doesn't like delays, but they don't detract from the merits of the property. When people calm down and know the regulation is in place to try to prevent environmental problems, it will ultimately get the go-ahead.