Miracles?Anyone sitting around waiting for the Colombian Government to cut EOM a break, give your head a shake. True, there may be some adjustment to the Paramo, but will it benefit EOM? Possibly, but it was just about four months ago they cancelled some of our permits. This is the same government that carved EOM deposits from as much as 16 million ounces to 3 million and then pulled the rug out from underneath that.
Minesa waits in the wings ready to acquire EOM deposits for next to nothing with the help of this government. Our Board of Directors has left us defenceless. No legal action in Colombia, no real negotiation, no major use of the Ecodes Study. Does the word "inept" hit the mark. Obviously our management has no relationship with the Colombian government. But the Government will extend the Paramo and make everything right! And the tooth fairy does exist.
There may be upside events that will help the SP, but do not count on Colombia doing anything to help EOM. The threat of arbitration was our ace in the hole and Anna and her minnows even screwed that up. The Concerned Shareholders is probably our best hope to replace the board and restart things with the government. The recent appreciation in the SP could also signal to Minesa that the ship is sailing without them which may encourage an offer.
I doubt our board has had any meaningful negotiation with the Colombians for some time. It may be arrogance, it may be ineptness, it may be incompetence. Even Galway lodged an appeal to the Constitutional Court decision. Armed with the Ecodes Study, why did our board not seize that initiative? Their silence, secret planning, conniving and lack of transparancy is palpable!
We may get out of this in spite of them. I would love to know the rationale behind the World Bank IFC pulling the plug at this critical time. It speaks volumes as to their faith in this board of directors.