amayapampa is bolivias eureka, page-7

Just a small comment about sovereign risk.
Some countries, like China , see no problem about investing in countries with perceived ( Western ) country risk.
Some companies equally see some small but acceptable risk in dealing in countries that have high sovereign risk ( Just ask Rio about their success in a certain African iron ore deposit, and now China)
For companies such as RIO/BHP it is actually managed as portfolio risk. They will have weighted investments in these countries differently to low sovereign risk countries. Across a range of investments they might have the capacity to have, lets say, 5% of projects fail. These may be in high sovereign risk place, OR, just straight plain bad decision making, aka BHP's 2Billion disaster in Ravensthorpe, WA.
The difference is, the bigger the company is, and the broader the range of cash flow generating activities they have, the greater capacity the company has to develop a "higher" risk project, be it "sovereign" or other wise.
Smaller companies on the other hand, are exposed more to the failure, or success, of such an investment.
I am not saying RAU shouldn't invest in Bolivia. It looks like it could be worth a punt. They have a number of other projects that could also be advanced. I am sure that readers here know all about the Bolivian risks/ rewards.
Maybe the question should be placed as " Is the the best use of company moneys at this time?" or " Is focus on a higher sovereign risk opportunity the best use of company cash?"
Some companies have done well with overseas projects. Some haven't ( will GGG ever do well in Greenland)
RAU seem to have a number of other opportunities that could be further developed. Is a high "sovereign risk" place the right place for RAU now?
Personally I think this risk is shown in the current share price for RAU. Its a bit hard to say what the future rewards will be.
DYOR