@chuk included in MNB announcement Risks with Operating in...

@chuk included in MNB announcement



Risks with Operating in Angola
The operations of the Company may be affected by various factors, including
failure to locate or identify mineral deposits, failure to achieve predicted grades
in exploration and mining, operational and technical difficulties encountered in
mining. In addition, difficulties in commissioning and operating plant and
equipment include mechanical failure or plant breakdown, unanticipated
metallurgical problems which may affect extraction costs, adverse weather
conditions, industrial and environmental accidents, health incidents including
pandemic diseases like COVID-19, industrial disputes and unexpected shortages
or increases in the costs of consumables, spare parts, plant and equipment.
In addition, the Company operates out of Angola which has been subject to civil
unrest in the recent past. The Company believes that although tension has eased,
civil and political unrest and an outbreak of hostilities remains a risk in Angola.
The effect of unrest and instability on political, social or economic conditions in
Angola could result in the impairment of the exploration, development and
mining operations of the Company’s projects.
At times in the past, Angola has lacked sufficient foreign currency reserves to
meet all demands. In such times, it may take weeks for a commercial bank to
facilitate an international money transfer. Foreign currency reserves are
impacted by such variables as movements in oil prices, being that oil is the
country’s largest export commodity in monetary terms, and the countries debt
obligations to foreign lenders.
There is also a high level of corruption in Angola, especially in the extractive
industries. This corruption often influences the awarding of contracts or the
granting of licenses. Furthermore, Angola does not have laws that specifically
address corruption, bribery and conflict of interest.