OREAFrom Euro res’ (Iamgold sub’) quarterly release on their holding in OREA and the view on Montagne d’Or.
EURO Ressources reports earnings for the first quarter ended March 31, 2022 https://finance.yahoo.com/news/euro-ressources-reports-earnings-first-180000881.html
With regards to Paul Isnard, the statements by the French Government in 2019 regarding the Compagnie Minire Montagne d’Or (the joint venture) have created some uncertainty around the delivery of the various authorizations and permits not yet obtained and required for developing the project, and can potentially affect the operational and financial capacities of the project. The JV is still awaiting a decision by the Supreme Court on whether it will admit and hear a final appeal by the French Government on the renewal of the Montagne d’Or mining titles, following the fact that the Administrative Court of Appeal in Bordeaux had rejected the French Government’s appeal in July 2021. In those circumstances, the Company is maintaining the same assumption from the impairment test related to the Paul Isnard royalty asset performed as at December 31, 2021. The Company continues to assume that the various authorizations and permits would be granted under conditions that will allow the JV to go on with this project, though the timing is somewhat uncertain. No impairment charges were recorded in the statement of earnings for the period ended March 31, 2022. That’s a big assumption by Euro Res’.
What we know:
French Supreme Court has yet to rule on whether it will hear the French govs’ opposition to the Montagne exploration licenses (note exploration licenses renewal, nothing to do with the mine permit which the French gov has already said ‘no’ to on environmental grounds – hence Nordgold’s legal action from 2020).
Again, Macron and other politicians have said no to the ‘golden mountain’ since 2019 and this was touted in numerous 2022 French election related articles as having been ended, along with two other unfriendly French environmental projects.
Macron ran on an environmentalist platform including no to any new deforestation; so, to grant a new gold mine in the rainforest...?
Nordgold subsidiaries already almost 2 full years into legal action against Frances’s ‘judgement’. However, today do you think Mordashov is urging his lawyers forward on this one or doing his best to hide on his yacht, which he can move to safety; a big potential hole in the ground not so easily?
Macron is riding the crest of a wave; just reelected, including on an environmental stance with 3 environmental unacceptable projects ended. Helping to leading the EU opposition to Putin, friend to Mordashov/Nordgold.
Taking assets from any
public company that Mordashov is involved in will likely incur the wrath of all those non Russian shareholders, including going to court. However, taking Montagne d’Or from private 99% held Mordashov/Nordgold is very likely to see him walk away for a US$50-75 mill sunken costs loss. In this scenario it is lilely that CAD OREA would receive French compensation for such a loss.
OREA going forward will rely on what is now the highly questionable FG based Maripa and the new Suriname project. My druthers is they took over control of Maripa from IAG recently to allow them to focus on Suriname and only put further cash into Maripa based on FG future gold exploration gov’ clarity. Previously, OREA were required to make payment/drill deadlines to IAG to hold onto Maripa.
GLTA -
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