Waiting GameWhat a great bunch of posts. We are very fortunate to have so many astute investors thoughtfully commenting. And thanks to leftseat for such a detailed analysis. Right now we are just killing time waiting for the coordinates. Frankly, I do not care if they write them on toilet paper so long as they do the right thing by EOM. I cannot say that I buy into the conspiracy theory that the Government is willfully trying to grab the EOM lands. It simply requires too many conspirators and the players have changed often.
Politically , they want the monkey off their backs. This has to be about their last crack at establishing the Paramo boundaries. If they trash EOM they surely know the caged animal will finally strike back. I doubt they will have the support of the Colombian courts who have criticized them severely in the past. A legal challenge will jeopardize whatever they are trying to do and the turmoil will continue.
The prospects of a 3100 limitation(if it applies to EOM) is still higher than the 2800 ceiling in the 2012 mining plan that identified 3 million ounces of reserves if my memory serves me. Logically, the reserves could double even if that elevation was imposed.
Having considerable experience in developing countries, much of it fighting corruption, to survive, or to simply get your way you need advocates to lobby on your behalf. EOM would have been well served getting past President Uribe to act on their behalf. Under his leadership Colombia was highly rated globally as an investment destination. He spoke highly of EOM on numerous occasions as a great example of an investor. It was his Government that had told EOM that they would be exempt from the 2011 environmental law. Unfortunately the political leadership changed and fortunes turned.
The fact we have not heard from management is not necessarily bad news. They are no doubt getting clarification and awaiting the coordinates. I simply cannot see the Colombians doing anything so dumb as to totally bar EOM from developing a viable mine. They would never withstand a legal challenge within Colombia, let alone an eventual arbitration application to the international court.