Thread about third world govt expropriation of property of mThread about third world govt expropriation of property of mining companies....
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News Of The Day
Financial Times “Mali’s junta escalates fight with mining groups over profit share “
Bloomberg “ Resolute faces $160 million demand from Mali as CEO detained”
This is very unfortunate for the CEO and two other executives being detained by Africa’s third largest gold producer. Hopefully this detention will be nullified as soon as possible.
This incident will ripple through gold mining boardrooms and with gold mining investors for a long time to come. Personal risks to a company’s executives and their employees will outweigh investment in this type of jurisdiction.
It’s also a reputational risk to the company as it’s shares are now suspended .
This is exactly why as a non Canadian investor I’ve invested in Probe Gold, a safe jurisdiction like Quebec.
Acquirers will now have to look more closely at
Probe Gold for the above reasons.
A safe jurisdiction will now be the first box on an acquirer’s checklist.
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Reuters "Mali issues arrest warrant for Barrick Ceo .." Shocking news
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Well, not Surprising ! I read the article other countries involved as well. Governments are broke ... so they want to increase there cut from gold projects. Same thing for large copper producers Rio Tinto is forced to renegotiate in some areas of the world.
Bottom line PRB is in a decent province for mining as well as a stable political environment albeit slow to approve mines !
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This is a great point! As a uranium investor with companies located in Canada/US and also Niger/Botswana; I'm learning the hard way how much geopolitical risk can absolutely crush everything. The world's ONLY greenfield uranium mine ready to produce at scale and with high grades (DASA mine owned by Global Atomic) is down 65% since I first bought in, in early 2022. My best Canadian and US positions have doubled in that same time frame. Trust me, regulatory issues are a concern, but not compared to the stuff going on in Africa right now.
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Dan Warren :
So, there's probably not all that much interest in NFG, located in Canada's NEwfoundland and Labrador province, with the Trans Canadian Highway within eyesight of all the drilling and discovery of high grade gold on North Queensway, with a town of 10,000 people, including those with mining experience, and an international Airport, a province eager for development and jobs and revenue generated from operations.....right?
Sarc
Still, the shortest route to success for NFG, I believe, is starting production ASAP!
Waiting for buyout or buy in offers from Big Gold is naive. Big Gold learned its lesson years ago in chasing properties with Big bucks. They want to buy everything cheap.
The best way forward is to start production ASAP, and simply resolve to remain ab independent company and develop Queensway independently. If Big Gold then wants to buy in as a minority interest, NFG will be calling the shots and deciding if this would be in NFGs interest.