Storm in a tee cup? The news about the government panel review of mining contracts have been around for a long time.
Anvil and First Quantum face Congo risks Leonard Zehr, today at 10:51 AM EDT
A newswire story out of the Democratic Republic of Congo has investors in Anvil Mining and First Quantum Minerals on edge Friday morning. Specifically, a government panel has indicated that of the 61 mining contracts under review, 38 need to be amended and 23 could be cancelled. That could really undercut Anvil, which has 100 per cent of its operating assets in the DRC. Its stock price has fallen 3 per cent to $18.10 on the TSX. But UBS figures Anvil’s “operating history in the DRC and record of social commitment to carry some weight with the panel.” First Quantum’s Kolwezi mining project in the DRC represents 13 per cent of its net asset value, according to UBS. The Frontier mine, which accounts for 20 per cent of estimated net asset value, is “not under risk of licence review, although royalty rates could increase,” it contends. First Quantum is down 2 per cent to $98.68.
AVM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
