Pensador's US$1.1b cash backing equates to just 4-5 days oil production from Angola.
Looking at respective cuts, Sonangol with an average exposure of 25% on their producing concessions (or there abouts)...are looking at no more than about 20 days production to equate to Pensador's cash backing.
At a macro level, as a counry, it is probably a reasonable move to divert such profits into long-term job creating projects such as gold, refineries, diamonds, copper, "secret women’s business"...and all other manner of cmmoity based projects.
Such diversification will set the country up for future prosperity...in the form of jobs, jobs, jobs and more jobs...and with it, potential down-stream development of value adding processes via the creating of an industrial base, initially with a commodities focus, but stemming from this, a more diverse sector mix in support.
I suggest the three putting up the bulk of the money can see both an avenue to increase their own wealth, but also one which progresses the nation via job creation at a local level.
Wealth building for all!
Pensador will provide the vehicle of choice for such an endeavour...and cleary become a model that others will follow, not just in Angola, but I suggest West Africa in general.
It is about giving Angola back to the Angolans, but in such a way that it makes business sense for all concerned.
This is why it will succeed.
Cheers!
CVI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
