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vespasian03

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06/11/18

22:20

Post #: 36410173
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Originally posted by densamer ↑

It takes a certain type of investor to invest in a place like Myanmar.

A few points...
- It's a huge tier-1 polymetallic brownfield deposit so geological and metallurgical are almost zero.
- Economic risk is low with 2nd scoping study comprising only 26% of current JORC showing worst case IRR of 41%, including tax and any production sharing.
- Finance risk is medium with Perilya on board and non-binding agreement to assist with funding up to $150m, and support of other JV partners.
- Sovereign risk is medium to high in my opinion - Myanmar has only just started opening up to non-Chinese/SEA foreign direct investment. But John has brought powerful locals companies on board as JV partners to 'grease the wheels' as they say and to lessen any resource nationalism backlash (western developed countries stealing all our wealth). So he's done a lot of smart things to reduce this risk.

Rick Rule has his own views, which I share, on the topic of sovereign risk:

"You tend to react more strongly to political risk that you haven’t experienced or don’t understand. My own belief is that money that is stolen from me by white people in English, according to the rule of law, is just as gone as money that is extorted from me in some third world kleptocracy."

"The big tier 1 discoveries that have yet to be made are going to be made in places where there have been problems with access or problems with cost of capital."

"My experience, further, by doing business internationally, and this is going to sound like a generality, which it is, but it is also true, countries that can’t get any worse don’t, and countries that can’t get any better don’t, either."

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https://www.mining-technology.com/news/myanmar-permits-local-foreign-investment-mining/
An old post of mine.......Myanmar Government and global interests want mining to be a goer here and MYL is in the front of the line.

MYL Price at posting: 5.1¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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So Far So Good., page-5

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