Post by
Luke555 on Dec 12, 2024 8:46pm
IAMGOLD: Navigating the Risks and Rewards
Polishprince23, given the recent instability in Mali, it's understandable that shareholders might be concerned about operations in neighboring Burkina Faso. The situation in Mali, with reports of abuses by Russian mercenaries and ongoing violence, certainly adds to regional instability. However, IAMGOLD has stated that it continues to have a constructive and positive working relationship with the Burkina Faso government, and there have been no challenges to its permits for the Essakane mine. Since IAMGOLD is partners with the government, it might be worth continuing the relationship and allowing the government to enhance security measures before making a decision to sell.
Ideally, I’ve always maintained that I’d like the company to sell off Essakane and use the funds to develop a second gold mine in Canada. The massive open pit Nelligan project, with its promising ore body and favorable infrastructure, could indeed be a game-changer for IAMGOLD. However, this move would be costly and complex, especially considering Essakane's significant contributions and remaining mine life.
Essakane is a significant asset for IAMGOLD, contributing substantially to its production. Selling it off could reduce exposure to regional instability but would also mean losing a valuable and productive asset.This is one of the major risks that companies face when operating in foreign countries.
I have a similar concern with Kinross, which operates in Russia. It’s a high-risk situation, but the benefits outweigh the disadvantages of selling their mine. It's a delicate balancing act, isn't it? The risks of operating in foreign countries with geopolitical instability versus the strategic benefits of leveraging those valuable assets. That’s is part of the cost of doing business in a foreign country.