West Africa and Gold

[countrylad]

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.

Hold my AK47 and park my Toyota Hilux, I will show you how dumb we can be

 

[farmerge]

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

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.

 

[farmerge]

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.

There's Dumb and Dumb and then Dumb and Dumber.

 

[mullokintyre]

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.

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

 

[farmerge]

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

Also I did OK some years ago before joining ASF, but these days I am a lot more cautious.
Juntas, Despots and Chinese can kill off a good thing pretty quickly.

 

[Garpal Gumnut]

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.

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

 

[qldfrog]

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.

Are you this young?
They CAN be that dumb!!!

 

[mullokintyre]

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

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

 

[qldfrog]

https://www.mining.com/web/mali-completes-takeover-of-gold-mines-abandoned-by-foreign-companies/

The story of Africa?
Pour money in, build stuff, get a bit back but before long, greed then recentment from the locals who take it over/steal it, destroy it and blame you.
But the gold is still there and i do believe sooner or later, China will get it out if we can not

 

[Dona Ferentes]

Gold Mining & Governments

"A trend of rising costs is evident in the global gold sector, including in West Africa, driven by a range of factors, not the least of which is a steady increase in royalties and indirect charges payable to host governments… In other words, as the price of gold rises, so too do expectations by host governments and host communities of an increasing share of the higher gold prices."
- Market Statement, Perseus Mining Ltd​

 

[Garpal Gumnut]

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

This is why coming second in mining in West Africa makes one less happy than coming third. and without a doubt winning is just fantastic.



gg