West Africa and Gold

Sean K said:

Seems to be just getting worse. Do these juntas really think they can operate mines by themselves? Maybe raise the royalties and increase government free carry but you don't kill the golden goose. They can't be that dumb.

Click to expand...

mullokintyre said:

Mali has become a bit of a worry for gold investors.
Barrick the latest to feel the wrath.
A Malian court has ordered Barrick Gold Corp.’s Loulo-Gounkoto mine into six months of provisional administration, transferring control of one of the Canadian firm's key assets to a state-appointed manager. Judge Issa Aguibou Diallo said Soumana Makadji, an accountant and former health minister, will oversee operations, according to Bloomberg.

The ruling follows months of tensions. In January, Barrick suspended operations after authorities blocked exports over a tax and royalty dispute. Though the company agreed to a resolution in February, it says Malian officials have yet to act. Meanwhile, exports from the mine—responsible for 723,000 ounces of gold last year—have been halted since November.

Mali’s junta, facing financial strain, demands back taxes and adherence to laws that would grant the state a larger stake and higher royalties. In October, Barrick paid $85 million as part of ongoing negotiations. The government has since seized 3 tons of gold and detained four Barrick employees.
Mick

Click to expand...

Sean K said:

Seems to be just getting worse. Do these juntas really think they can operate mines by themselves? Maybe raise the royalties and increase government free carry but you don't kill the golden goose. They can't be that dumb.

Click to expand...

farmerge said:

As has been my thoughts for a long time about investing in Africa and the Islands, is fraught with danger to the limited amount of hard earned that may be tied up with these despots.

Click to expand...

mullokintyre said:

Its a risk reward calculation.
Yes its risky "investing" in West Africa , but the rewards have been excellent if you pick the right stocks and the right timing.
I am more than happy with my forays in to West Africa.
mick

Click to expand...

Sean K said:

Seems to be just getting worse. Do these juntas really think they can operate mines by themselves? Maybe raise the royalties and increase government free carry but you don't kill the golden goose. They can't be that dumb.

Click to expand...

Sean K said:

Seems to be just getting worse. Do these juntas really think they can operate mines by themselves? Maybe raise the royalties and increase government free carry but you don't kill the golden goose. They can't be that dumb.

Click to expand...

Garpal Gumnut said:

It really is like the Wild West down in Western Africa. It should be remembered that western companies like Barrick are not squeaky clean neither, nor are the funds many based in London who generate papers and assessments of the joint as well at variance with truth and reality.

Put in to that mix, Wagner or Russian remnants of Wagner, large banks, the USA foreign policy and the Press with their own agenda. It is impossible for the ordinary punter to make an informed guess. I think Mick @mullokintyre stated it best. There are immense rewards and catastrophic losses to be made in Western Africa. You choose.

It's a coin toss. I've got CAY Canyon Resources, the bauxite outfit there and nothing else there. I won't be adding to CAY and I'll not be buying any gold assets. Gold may be getting toppy anyway atm.

gg

Click to expand...

mullokintyre said:

One thing that shoul be entertained when determining risk rewards scenarios, is that the spectacular failures GG refers to could mean losing 100% of your investment at the very worst.. Not a great outcome!
However, the potential rewards are almost unlimited.
I have only had one ten bagger in my share plying life, but I have had more than my share of multi baggers.
So although one should not try and pretend that every investment is a potential multi bagger, the possibility is still there.
Mick

Click to expand...