Is it too late to buy AVZ?, page-75

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retiredyoung

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05/02/18

08:02

Post #: 30813529
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Originally posted by alexz ↑

Because DRC is a tumultuous political situation in the best of times, and the situation was and still is rapidly deteriorating. I didn't want to throw my money into the DRC and lose it in a civil war, but with China stepping into the country, stability might be returning. Might be. But I'm yet to be convinced that the situation will stabilise, so I'm interested in others' vested perceptions in the country to try and gauge AVZ's chance of success.

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Hi alexz

DRC to be global growth out-performer in 2018

It is BMI Research's view that higher commodity prices, new projects and expansions will make the DRC the fastest growing major mining market in the world.

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"We expect DRC's mining industry value to witness an average growth of 17.7% in 2018, outperforming other comparable mining markets.

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"In terms of political instability, BMI's Country Risk team expects that President Kabila's failure to relinquish office at the end of 2017 will limit foreign aid and lead to the growing strength of insurgencies that will cause unrest in the central and eastern regions.

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"Instability in the eastern regions of North and South Kivu in particular would pose risks to the numerous gold operations found there, although the country's largest gold mine, Kibali, should remain relatively sheltered due to its location further north.

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"Another key risk stems from revisions to the DRC’s mining charter passed through parliament in January 2018.

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"The new charter would see royalty rates on base metals such as copper and cobalt increase from 2% to 3.5% or even 5% if deemed "strategic" metals.

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"However we do not expect this change to have a major impact on investment as the proposed increase in royalties would only bring the country in line with rates found in other jurisdictions in the region.

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"Furthermore, containing up to 50% of global cobalt reserves and accounting for 8 6 .7% of global cobalt exports in 2016, we expect cobalt buyers will have to continue to rely on the DRC as their key supplier, due to a distinct lack of supply from alternative markets."

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https://www.miningreview.com/news/bmi-research-drc-global-growth-performer-2018/

AVZ Price at posting: 31.0¢ Sentiment: Hold Disclosure: Held
8 Upvote

0 Great analysis

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Is it too late to buy AVZ?, page-75

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