african discount, page-9

Well if it only suggests moderate risk then the stock is overvalued - by George! If you think moderate risk what mkt cap do you think the stock would be trading at if the deposit was in Australia? And what are your assumptions re earnings?

I sold my small holding today to help fund a short position on a couple of US tech stocks. Market's looking very wobbly. That said I remain extremely interested in SYR's potential and could be back in at any time. Still have a significant position in TLG, which at $20m market cap could IMO easily spike 50% should an offtake agreement be announced.

Here's a little article about the experiences of Chinese companies in Africa.

I'm sure this is not news to anyone, but interesting to read the Mozambique mention. I realise that SYR is not in a similar position to the Chinese company who bought its asset from the Moz government, but nevertheless salutary IMO.

Regards and best wishes to all.

http://www.scmp.com/business/commodities/article/1381796/chinese-investors-warned-about-african-mining-risks

"Chinese companies are keen to pour money into mining projects in Africa, but investors have received a fresh warning about the risks in the continent's mining sector.

Speakers at the recent Global Resource Investment Conference in Shenzhen told of some of the problems that can beset projects in resource-rich Africa.

"There are many potential Chinese clients who are interested in investing in mines in Africa, but there are lots of challenges," said Cindy Pan, a lawyer at international law firm Dentons.

Pan cited poor infrastructure, political instability, corruption, cultural differences, as well as other political and legal risks.

She cited the case of a Chinese company that invested in a mine in the Democratic Republic of Congo, where officials made repeated demands for bribes.

One Chinese company bought a mine in Mozambique, where the acquisition contract included a clause that allowed the government to buy 15 per cent of the mine, Pan said. The contract did not specify the price at which the Mozambique government could buy the stake, and this ambiguity creates risks for the Chinese client, she added."