i would be a bit wary about ROL's Kyrgyz assets. I have spoken with the MSR MD about why some companies in Kyrgyz have such difficulty in passing parliamentary inquiries.
As you might already know, MSR is the only recent goldie that survived a parliamentary inquiry because they developed their own asset.
Back in the old days, many projects were purchased by investors very cheaply through corruption. These projects were then flipped so they make short-term gains. The ability to get these projects in the past have come under scrutiny by the new government hoping to stamp up corruption and licences that should not have been issued.
ROL obviously thinks they can sort of win over the government by starting afresh in a new company but this is not guaranteed. It is a risky bet but if they succeed the payout will be big.
This is the real reason why ROL has been able to acquire Kyrgyz assets so cheaply because their legitimacy is questionable.
The north is also a farming region making it a bit harder to get community support.
ROL Price at posting:
31.0¢ Sentiment: None Disclosure: Not Held
