This appears to be yet another hugely significant step on the...

This appears to be yet another hugely significant step on the path to this mine being built. The rise in share price on LSX over night to equivilant of about 44c au further reflects it.

The only concern people seem to have about the deal is the influence of China and whether they will ‘play by the rules’ and by this they mean will China pay market price for the product and will China lean on Angola for particular quotas of sales/deliveries afforded to them.

The answer in the foreseeable future has to be no to both of these questions. The Lourenco government is painting Angola as ‘open for business’ looking to promote free market conditions, stamp out corruption and attract the FDI of foreign companies such as Pensana
to invest and diversify the economy. If it came to light the autonomy of a company, or rule of law agreements signed came into question this would be very bad PR for this free economy narrative of the Angolan government.

People are sometimes fearful of China but it may be helpful to consider a few points. Like most authoritarian regimes the CCP is primarily concerned with its survival and with a population of over 1 billion this is no easy task. They recognize that the best way to ensure order and compliance in this population is to facilitate economic growth, individual wealth and lift in living standards. As people who have food on the table are far less likely to rebell. This is why we saw China set the target of 7% GDP growth per year in recent history.

To achieve this they need energy resources and not just with a view to the next 5 years (as often happens in democracies with mandated periods of ruling terms) but rather 20,50,100 years which fits more with the Chinese experience of leadership through thousands of years of Dynasties and more recently Mao, Deng and now Xi.

Thus we can see why Xi launched the Belt and Road initiative years back to build up infrastructure in the developing world and ensure supply chains for centuries to come. Thus in Angola they helped restore the Benguela Railway and so forth.

People are sometimes fearful of China and it is because China’s view of Human Rights and freedoms is very different to ours. The CCP’s view is that civil and political rights of their population can only occur sequentially to economic development. This limits the freedoms of people within China. But on the world stage the CCP needs to be far more peaceful, calculating with its strategy.

In terms of China exerting it’s influence in Angola/pm8. High level diplomacy teamed with the economic influence would have lead to this specific company being chosen, GWC is very close and trusted to the extent to which it looks after the Chinese satellite/space program. This pressure doesn’t mean that this company is going to somehow sabotage the project for China’s sole benefit. But it subtly ensures some economic return through the building of the mine to China. Chinese banks will finance, the Chinese Company will be paid to build it.

Atherley understands all of the above acutely and with his experience and connections in China have lead to fantastic outcomes for the company and by extension shareholders that will come to fruition over the coming years.

The upward momentum in share price is certainly building. Covid saw us drop to 10c late March but since then we have grown x4. Had covid not happenned the base share price at the time of 25c may have grown with all the news flow at the same rate x4 to $1 already. But what is even more interesting is that covid seems to have accelerated the green energy revolution which means if a vaccine is achieved (more developments in uk overnight) you may see a huge and quick re rate to over $1.25 in
short space of time.

GLTAH and do your own research- great journey to be on!