RE: DNRman needs to do some DDRed Hill Energy and Mongolian Coal and other investments in general...
I will say that Red Hill has an impressive web site, but whatever their potential one large portfolio allocation to Mongolia mining is all I have the stomach for...I don't trust the politicians, and in South Gobi's case, I am concerned about fall out from any suspension of operations by Ivanhoe and Rio Tinto in the increasing likely event that an agreement on working accord, inclusive of ownership sharing and taxation plan can not be reached...As the price of commodities goes higher the parties seem to get further apart and the time line goes further out....
Yes yes I know that SGQ doesn't need a "working agreement" like IVN does because the resource isn't deemed to be "strategic"...Not now it isn't. The political environment in Mongolia still seems to me very fluid with changes to laws and policies possible at any time, irregardless of what was previously agreed to....especially when is success is achieved and envy rises.
SGQ does seem to have made a new all time high close last week...It'll be great to see some revenue numbers and profit margins on a income statement so that some sense of better valuation can be achieved.
Holding on but with fingers crossed that Ivanhoe and Rio Tinto can move forward under a workable agreement with the Mongolians who are still trapped in a former communist mindset of some kind. If IVANHOE / RIO fold up tent, I believe the odds of economic reprisals against SGQ are real..
SGQ - great story, right commodity, great location, near China, wrong government, hence the risk and likely lower valuation to earnings once there are such things to show than one would expect.
Hoping to be pleasantly surprised as to how all this works out...