Complete amateur hour within the interim Mali Gov combined with a nationalistic fervour to right all the wrongs they see existing in the last 40 years of gold mining industry. It would be no surprise that Simon & Board can't get a handle on that side of things.
It seems the interim gov have a childish entitlement mentality when it comes to Morilla (that comes from zero experience), and expect the West to carry on funding it forever. It's frankly bizarre given no gold companies want to take it on, why they cannot see it has run its course and time to close it. If the Gov want to fund digging out the main pit again to keep production going as a job creation strategy, then they ought to do that without burning their entire mining sector to the ground and destroying international investor confidence in Mali.
This is what happens when you put an academic in charge of real things I guess. The mining sector in Mali will struggle with the current Minister in charge. If they want changes to avoid dodgy practice, that is one thing, and they would be right, but there are provisions in this new code that make Mali frankly a complete investment no-go zone. Not having exclusive rights to the tenement you paid to explore and develop?? Just crazy.
I would imagine if Stage 2 needs funding next June then it will come entirely from GF again, as they want the product, and our interests will be diluted in the project a further 5%. I don't mind it tbh as it will be preferable to us raising money here at crazy discounts - if it were even possible which is doubtful given the non existent confidence in Mali Government now from ASX investors. After stage 2 is at nameplate might be a time for GF to offer us a deal for our remaining share. By then the expertise in running the plant will be sufficient that they don't need LLL's team any further.
LLL Price at posting:
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