Geekay,
It is really around the risk you are prepared to accept. Some companies have looked at EQN, but made no move due to the soverign risk. Obviously with higher risk comes higher reward, (and potentiually greater loss) and that is the gamble you accept. With Zambia already appearing to not honour a previous tax and royalty agreement signed with EQN, in my mind, it raises questions about what other changes may occur in that country that could impact on EQN and their ability to generate a good return on their investment. I look at Zimbabwe and notice that there is little or no condemnation by other African nations on their total disregard for private property ownership. There would appear to be a willingness in some countries in Africa to do whatever is required to maintain position and power. You need to weigh the potential gains vs the potential risk and make a call.
I did that and said No to EQN, but then I am very conservative in my investing.
Horse
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